International crude oil climbed more than 1% in early Monday ASIan trade after U.S. President Trump rejected Iran’s peace plan designed to end the Middle East conflict and reopen the Strait of Hormuz, a critical global shipping artery.

The November contract for U.S. crude futures rose 1.3% to settle at $93.62 per barrel. Global benchmark Brent crude gained 1.8% to $106.31 per barrel.

The oil price uptick reflects renewed market worries over Middle East geopolitical risks, especially supply disruption fears tied to navigational safety in the strait.

Trump Turns Down Iran’s Proposal

The Wall Street Journal, citing unnamed U.S. officials, reported that Trump rejected Iran’s conditional proposal to reopen the Strait of Hormuz and told aides he expects U.S. strikes against Iran to resume after the November midterm elections.

Trump later confirmed to reporters that he had turned down Tehran’s latest proposal, stating: "They put forward an offer, but I rejected it."

Iranian Foreign Minister Abbas Araghchi said last Friday that Iran was ready to reopen this vital waterway within seven days and restart nuclear negotiations with Washington if the Trump administration met Tehran’s conditions. He told reporters on the sidelines of the UN General Assembly in New York: "If certain conditions are met, the Strait of Hormuz will be opened at the end of seven days, and negotiations will resume."

Iran’s Stipulations

According to Iranian Foreign Ministry Spokesman Esmaeil Baghaei, the conditions include an end to what Tehran calls U.S. "acts of aggression", lifting maritime blockades and economic warfare, and releASIng Iranian assets.

The Strait of Hormuz stands as one of the world’s most important oil shipping routes. Any news about disrupted passage through the strait can rapidly push up the risk premium for crude oil.

Meanwhile, the Saudi-led coalition in Yemen said on Saturday it had intercepted missiles launched by Yemen’s Houthi movement. Backed by Iran, these attacks and interception incidents further amplified market concerns over spillover risks from regional tensions.

Middle East Tensions Move Oil Markets

Earlier this month, Trump stated he expected the conflict, which began with U.S. and Israeli airstrikes on Iran on February 28, would end shortly after the midterm elections, followed by a drop in oil prices.

Current oil market reactions show traders are still closely assessing the trajectory of the Middle East conflict, navigational risks in the Strait of Hormuz, and potential impacts of subsequent U.S. military operations on global crude supplies.