Oil prices jumped by about $5 per barrel today, Monday, amid the failure of the United States and Iran to reach an agreement on a peace proposal drafted by Washington, while the Strait of Hormuz remained largely closed, leading to a continued shortage of global energy supplies. Brent crude futures rose $4.53, or 4.47%, to reach $105.82 per barrel by 03:46 GMT, continuing gains that reached 1.23% on Friday. US West Texas Intermediate crude reached $100.14 per barrel, an increase of $4.72, or 4.95%, after settling up 0.64% in the previous session. Hopes for an imminent end to the 10-week US-Iran conflict, which would allow oil to pass through the Strait of Hormuz, faded after President Donald Trump described Iran's response to the US proposal for peace talks yesterday, Sunday, as "unacceptable." Priyanka Sachdeva, senior market analyst at Phillip Nova, said: "Oil market trading continues as a machine for producing geopolitical headlines, as prices swing sharply based on every comment, rejection, or warning from Washington and Tehran." Trump is scheduled to arrive in Beijing on Wednesday, and US officials said he is expected to discuss the Iran issue among others with Chinese President Xi Jinping. IG market analyst Tony Sycamore said in a note: "Market eyes are now directly on President Trump's visit to China this week." He added: "There is hope that he can convince Beijing to use its influence on Iran to push for a comprehensive ceasefire and a solution to the ongoing unrest in the Strait of Hormuz." Saudi Aramco CEO Amin Nasser said yesterday, Sunday, that the world has lost about a billion barrels of oil over the past two months, and energy markets will take time to stabilize, even if the flow of supplies is resumed. Data from shipping firm Kpler showed that two more tankers loaded with crude oil left the Strait of Hormuz this week with trackers turned off to avoid Iranian attacks, confirming the growing trend to maintain Middle East oil exports.
