London/Singapore, September 28, 2026: Global oil prices moved sharply higher on Monday as uncertainty over the US-Iran conflict renewed concerns about crude supplies through the Strait of Hormuz, one of the world’s most important energy shipping routes.

Brent crude futures climbed above $106 a barrel, while US West Texas Intermediate (WTI) crude traded around $93–94 a barrel during early trading. Reuters reported that Brent was last above $107 after rising more than 3% during Monday’s session.

Iran Proposal Rejected by Trump

The latest increase followed US President Donald Trump’s rejection of an Iranian proposal aimed at resolving the conflict and reopening the Strait of Hormuz.

Iran had presented a proposal through Qatari mediators. Trump rejected the proposal but subsequently indicated that further discussions with Iran could take place during the week.

The uncertainty has made traders more cautious about the possibility of prolonged disruption to energy shipments.

Hormuz at the Centre of the Market

The Strait of Hormuz is a critical route for international energy supplies. Any prolonged disruption can increase transportation costs and create concerns about the availability of crude oil and refined petroleum products.

Market participants are therefore closely watching diplomatic developments between Washington and Tehran.

Preliminary data cited by Reuters showed crude exports from major Middle Eastern producers recovering to about 12.8 million barrels per day in September, while shipments through the Strait of Hormuz were on track for roughly 7.4 million barrels per day.

Inflation Concerns Return

Higher oil prices are also creating concerns for the global inflation outlook.

Expensive crude can increase the cost of transportation, manufacturing and other energy-intensive activities. If elevated prices persist, businesses and consumers could face higher costs.

Financial markets are also watching government bond yields and central-bank policy because persistent energy-price increases can complicate decisions on interest rates. Reuters reported that the dollar remained close to a two-month high as investors assessed the impact of oil prices on inflation and monetary policy.

Markets Remain Sensitive to Further Developments

Oil traders are now closely monitoring both the military situation in the Middle East and the possibility of renewed US-Iran negotiations.

Any progress toward reopening the Strait of Hormuz could ease supply concerns, while further disruption could place additional upward pressure on crude and refined-product prices.

For businesses worldwide, the direction of oil prices will remain an important factor for transportation costs, energy expenses, inflation and financial-market sentiment in the coming days.