Oil Prices Ease Slightly After Iran Proposal on Hormuz
Oil prices gave up part of their gains during Asian trading on Monday following reports that Iran had submitted a new proposal to the United States aimed at reopening the Strait of Hormuz.
Despite the pullback, crude prices remained supported overall, as failed diplomatic efforts and ongoing supply disruptions continued to keep markets on edge.
Brent crude futures rose 1.2% to $106.64 per barrel, while U.S. West Texas Intermediate (WTI) gained 0.9% to $95.21. Earlier in the session, Brent had climbed as high as $107.97.
Iran’s Proposal to Reopen Hormuz
According to reports, Iran has put forward a plan to reopen the Strait of Hormuz as part of a broader effort to de-escalate tensions and potentially end the conflict.
However, the proposal also includes delaying discussions around Iran’s nuclear program—an issue that is likely to face strong resistance from Washington.
The U.S. has consistently demanded that Iran halt uranium enrichment and cease nuclear activities, while Tehran has largely rejected these conditions. The current state of Iran’s nuclear capabilities remains unclear following U.S. strikes in 2025.
Key Conditions for Peace Talks
Washington has repeatedly emphasized that restoring full access through the Strait of Hormuz is a prerequisite for any meaningful peace negotiations.
On the other hand, Iran has called for the removal of the U.S. naval blockade before engaging in broader discussions.
US-Iran Talks Stall as Tensions Persist
Diplomatic efforts faced another setback over the weekend when Donald Trump canceled a planned delegation visit to Pakistan shortly after Iranian officials left the country.
Although a ceasefire agreement remains in place since April, both sides continue to hold firm positions, preventing progress toward a comprehensive resolution.
Ongoing Supply Disruptions Support Oil Prices
Oil flows through the Strait of Hormuz—a critical global energy corridor—remain severely restricted, with little sign of improvement in recent days. This ongoing disruption continues to fuel concerns about tightening global supply.
Further adding to market pressure, U.S. Treasury Secretary Scott Bessent indicated that Washington does not intend to extend a waiver allowing the purchase of Russian and Iranian oil shipments currently at sea.
Hormuz Blockade Impacts Global Supply
Since late February, Iran has effectively blocked the Strait of Hormuz in response to escalating tensions involving the U.S. and Israel. This move has disrupted approximately 20% of global crude oil supply, significantly impacting energy markets worldwide.
As uncertainty persists, oil prices remain sensitive to both geopolitical developments and potential shifts in supply conditions.
