By Asaye Bankole
Global oil prices rose sharply on Monday after US President Donald Trump rejected Iran’s proposal to reopen the Strait of Hormuz within seven days and resume talks over its nuclear programme.
Brent crude, the international benchmark, gained more than three per cent in Asian trading, climbing above $107 per barrel and approaching $108 before easing slightly. November Brent futures were trading at about $107.35 shortly before 8:00 a.m. GMT.
Iran presented its proposal at the United Nations General Assembly on Friday. Under the plan, Tehran would reopen the strategic waterway and return to nuclear negotiations in exchange for the release of frozen Iranian funds, the lifting of US sanctions and an end to the naval blockade of Iranian ports.
The Strait of Hormuz is a crucial global energy route linking the Persian Gulf with the Gulf of Oman and the Arabian Sea. Before the conflict escalated, about one-fifth of the world’s oil supplies passed through the waterway.
Shipping activity has since declined significantly amid attacks on vessels and heightened security concerns. MarineTraffic recorded 132 vessel crossings between September 21 and 27, up from 116 the previous week, but still well below the roughly 130 crossings recorded each day before the conflict.
The latest developments have heightened concerns over global oil supplies and contributed to volatility in financial markets.
Asian markets also recorded mixed performances, with Japan’s Nikkei 225 falling 0.73 per cent and South Korea’s Kospi dropping 2.70 per cent. Hong Kong’s Hang Seng rose 0.54 per cent, while Australia’s S&P/ASX 200 gained 0.17 per cent.
Investors are now closely monitoring developments between Washington and Tehran, particularly the future of commercial shipping through the Strait of Hormuz and its potential impact on global energy prices.
COMMENTS