Global oil markets rallied sharply on Monday after US President Donald Trump dismissed Iran’s proposal aimed at ending the ongoing regional conflict, reigniting fears of prolonged supply disruptions.

Benchmark Brent crude surged $4.16, or 4.11 percent, to settle at $105.45 per barrel. Meanwhile, West Texas Intermediate crude gained $4.38, rising 4.59 percent to $99.80 per barrel.

Markets reacted immediately after Trump called Tehran’s response to Washington’s peace framework “totally unacceptable” in a social media statement, dampening expectations of a near-term ceasefire.

Iran’s proposal reportedly sought a broader regional settlement, including an end to fighting in Lebanon, removal of US sanctions, lifting of naval restrictions, and guarantees against future military strikes. Tehran also reiterated its sovereignty claims over the strategically critical Strait of Hormuz, a key global oil transit route.

Shipping activity through the strait remains heavily disrupted due to ongoing hostilities, leaving traders highly sensitive to diplomatic developments. Any escalation or setback in negotiations has continued to trigger sharp price swings in global energy markets.

According to Saudi Aramco Chief Executive Amin Nasser, nearly one billion barrels of oil supply have been removed from global markets over the past two months because of the conflict. He warned that even if tanker traffic resumes, restoring stability to energy markets could take significant time.

Oil prices had fallen nearly six percent last week on optimism that a ceasefire might reopen shipping lanes and ease supply concerns. However, renewed uncertainty surrounding negotiations has reversed that trend, pushing crude prices higher once again.