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EMEA Oil Update: Crude Jumps as Trump Says US-Iran Truce 'On Life Support'

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EMEA crude futures advanced in after-hours trading on Monday after President Trump described the fragile US-Iran ceasefire as being "on life support," following his rejection of Iran's latest diplomatic proposal.

Brent crude futures gained 3.97% to $105.28 per barrel, while Murban oil futures were up 3.27% to $102.50/bbl.

ING strategists said the oil market remains heavily headline-driven, with prices surging after Trump rejected Iran's latest peace plan.

On Monday, Trump said that a ceasefire with Iran was "on life support" after he rejected Tehran's response to a US peace proposal, prolonging the two sides' impasse and the effective closure of the Strait of Hormuz.

"I would call it the weakest, right now, after reading that piece of garbage they sent us, I didn't even finish reading it," Trump told reporters at the White House. "I would say the ceasefire is on massive life support."

Both the US and Iran rejected each other's latest peace proposals to end the 10-week conflict as the two sides struggle to maintain a fragile ceasefire.

On Sunday, Iran released a response focused on ending the war on all fronts, including where Israel is fighting Iran-backed Hezbollah militants.

Iranian authorities also demanded compensation for war damage, emphasized the country's sovereignty over the Hormuz, while calling on the US to end its blockade, lift sanctions and remove a ban on its crude sales.

Trump dismissed Iran's offer and demands in a social media post as "totally unacceptable."

"The two sides continue to maintain a fragile ceasefire while the effective closure of the Strait of Hormuz drags on," Saxo Bank strategists said in a note Monday.

Fueling bullish sentiment, Israeli Prime Minister Benjamin Netanyahu said on Monday that the conflict was "not over," raising fears that tensions in the Middle East could escalate again and further threaten energy supplies.

Meanwhile, the effective closure of the Hormuz during the 10-week conflict has choked off exports of crude, gas and fuels, driving up energy prices and heightening fears of global supply disruptions.

Kpler said that 53 vessels operated by the world's top 10 container shipping lines entered the Persian Gulf before the outbreak of conflict. Of those, 79% remain unable to exit, the analytics firm said.

Going forward, market participants will be closely following Trump's meeting with Chinese President Xi Jinping, during which Iran is set to be among the topics.

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