Oil Prices Rise Again in Asian Markets Amid Hormuz Tensions

Crude oil prices moved higher in Asian trading on Monday (September 28) amid renewed uncertainty over the Iran conflict and the future of shipping through the Strait of Hormuz, following the reported rejection by US President Donald Trump of an Iranian proposal aimed at ending hostilities and reopening the strategic waterway.

According to Reuters, Brent crude rose more than 1% to around $105.64 a barrel, while US West Texas Intermediate (WTI) crude gained more than 0.5%, trading at approximately $93.11 per barrel.

The Strait of Hormuz has emerged as a major source of uncertainty for global energy markets. The strategically important waterway normally carries a significant share of the world’s oil and liquefied natural gas supplies. Recent conflict has sharply reduced vessel traffic through the strait.

Earlier, a senior Iranian official told Reuters that Tehran was prepared to reopen the Strait of Hormuz within seven days if the United States reduced military pressure and lifted its blockade on Iranian ports. Iran had also conveyed a proposal to end hostilities to Washington through intermediaries, according to the official.

The developments have kept energy traders focused on the security of the waterway and the possibility of disruptions to global oil supplies.

A sustained reduction in shipping through the strait could put further pressure on global energy supplies and contribute to higher oil prices. Conversely, a diplomatic breakthrough and a return to normal shipping conditions could ease supply concerns and reduce some of the upward pressure on crude prices.

For now, developments surrounding US-Iran diplomacy and the security of the Strait of Hormuz remain key factors for international oil markets.