Global Oil Prices Spike as President Donald Trump Rejects Iran's Proposal to Open Strait of Hormuz

Commercial vessels anchored in the Strait of Hormuz off Bandar Abbas, Iran, on September 7, 2026 [Vahid Salemi/AP Photo]. Oil prices experienced a sharp increase following United States President Donald Trump’s decision to reject an Iranian proposal aimed at reopening the Strait of Hormuz within seven days.

Brent crude, serving as the international benchmark, climbed over 3 percent on Monday, approaching $108 per barrel during trading sessions in Asia. Although prices eased slightly later in the afternoon, Brent futures for November settled at $107.35 a barrel shortly before 08:00 GMT.

Meanwhile, major stock markets across the Asia Pacific region experienced a mixed trading session, following a strong finish on Wall Street where the benchmark S&P 500 gained 0.5 percent on Friday. In Asia, Japan and South Korea’s benchmark Nikkei 225 and Kospi indexes declined by 0.73 percent and 2.70 percent, respectively. Conversely, Hong Kong’s Hang Seng Index advanced 0.54 percent, and Australia’s S&P/ASX 200 edged up 0.17 percent.

This latest wave of market volatility follows remarks made by President Donald Trump on Saturday, in which he stated that Tehran’s recent proposal to end the US-Israel war on Iran was unacceptable. The proposal, presented at the United Nations General Assembly on Friday, suggested that the US release frozen Iranian funds, lift economic sanctions, and terminate its naval blockade on Iranian ports. In return, Iran offered to reopen the strait and resume negotiations regarding its nuclear programme within a week.

Prior to the military strikes launched by the US and Israel against Iran in late February, roughly one-fifth of the world's global oil supplies passed through the Strait of Hormuz, connecting the Gulf to the Gulf of Oman and the Arabian Sea. Commercial shipping through this crucial waterway has dropped significantly since the outbreak of the war due to numerous attacks on vessels in the Gulf, predominantly attributed to Iran or allied groups.

Data from maritime intelligence platform MarineTraffic indicates that vessels completed 132 transits through the strait between September 21 and 27, marking an increase from 116 transits the previous week. However, this remains far below pre-war levels, when the waterway typically saw approximately 130 crossings each day.