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Crude Oil Prices Surge on Lack of Peace Deal Between U.S. and Iran

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Crude oil prices rose on Monday after U.S. President Donald Trump said Iran's response to its proposal for a halt to the war was "unacceptable."

Brent crude at last look gained 2.4% to US$103.74/barrel and West Texas Intermediate crude climbed 2.2% to $97.55/barrel. The lack of a deal between the U.S. and Iran has renewed concerns that the global oil market will remain tight as the Strait of Hormuz remains effectively closed, Reuters said in a Monday note.

"Despite reassuring noises that back channels are still open and the parties are talking, our take is that the U.S. and Iran are as far away from agreement as when this supposed ceasefire started," Reuters quoted PVM Oil Associates analyst John Evans as saying.

Even if the strait is reopened, it will take several months for the energy markets to normalize, the report said, citing analysts and Saudi Aramco CEO Amin Nasser.

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