Brent Crude prices saw a sharp spike on Monday, as peace dialogue between Iran and the United States appeared to have come to an impasse. The global benchmark jumped 3.2% to $107.65 per barrel.
"The latest rise in international crude prices follows the rejection of an Iranian proposal to resolve the conflict and reopen the Strait of Hormuz, keeping supply concerns in focus," said Ponmudi R, CEO of Enrich Money.
Oil prices have remained extremely sensitive to developments in West Asia, as well as the lack of clarity on progress related to peace negotiations. Iranian Foreign Minister Abbas Araghchi said on Thursday that his country is prepared for a "doomsday war" after the Trump administration rejected Iran's Hormuz proposal.
Trump rejected Tehran's conditional offer to reopen the Strait of Hormuz and resume nuclear negotiations with Washington. The Wall Street Journal reported on Saturday, citing unnamed US officials, that Trump had also told aides he expected US strikes on Iran to resume after the November midterm elections.
However, Araghchi said that while Iran is ready for a "doomsday" war with the US, the diplomacy door remains open so as not to "miss any chance for peace."
Araghchi made the comments during an appearance on NBC News' "Meet the Press" following last week's United Nations General Assembly. Washington and Tehran have been locked in a sporadic war since Feb. 28, which has caused a global energy supply shock, spiking oil and gas prices.
The energy disruption, described as one of the biggest ones in history by International Energy Agency, has fuelled the fire of global inflation.
"If you ask us, there is no reason why we should go back to diplomacy, but I am still trying diplomacy because I think we shouldn't miss any chance for peace," Araghchi said. "We are ready to negotiate as much as we are ready to face any challenge ... We stand firm in the face of any aggression against us, even if it comes to a doomsday war."
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