Oil prices surged by $3 a barrel on Monday, following the unsuccessful negotiations between the United States and Iran regarding a peace proposal put forth by Washington. Meanwhile, the Strait of Hormuz remained predominantly closed, contributing to the ongoing constraints on global energy supplies. Brent crude futures increased by $3.18, representing a 3.14% rise, reaching $104.47 per barrel by 2336, building on a 1.23% gain observed on Friday.

U.S. West Texas Intermediate was at $98.51 a barrel, reflecting an increase of $3.09, or 3.24%, following a 0.64% rise in the preceding session. Expectations for a swift resolution to the ongoing U.S.-Iran conflict, which has persisted for ten weeks, were undermined following President Donald Trump’s rejection of the Iranian reply to a U.S. peace proposal, labeling it as “unacceptable”. Trump is set to arrive in Beijing on Wednesday, where discussions with Chinese President Xi Jinping are anticipated to include Iran, among other subjects, as reported by U.S. officials.

Market focus is now directed towards President Trump’s upcoming visit to China this week,” noted market analyst Tony Sycamore. There exists optimism that he may convince Beijing to utilize its influence over Iran to advocate for a comprehensive ceasefire and a resolution to the persistent disturbances in the Strait of Hormuz. According to Saudi Aramco CEO Amin Nasser, the global market has experienced a depletion of approximately 1 billion barrels of oil in the last two months, indicating that energy markets will require a significant period to stabilize, even in the event that supply flows are restored.

Last week, two additional tankers carrying crude oil departed the Strait of Hormuz with their trackers disabled to evade potential Iranian assaults, as indicated by Kpler shipping data. This development highlights a growing trend aimed at maintaining oil exports from the Middle East.