Brent crude settled up $2.92, or 2.9%, at $104.21 per barrel, while U.S. West Texas Intermediate (WTI) crude gained $2.65, or 2.8%, to close at $98.07. During the session, Brent briefly climbed to nearly $106 while WTI moved back above the $100 level.
The rebound followed comments from U.S. President Donald Trump, who described the ceasefire with Iran as “on life support” after rejecting Tehran’s latest response to a U.S. peace proposal. Markets interpreted the remarks as a sign that negotiations remain stalled and that no near-term reopening of the Strait of Hormuz is likely.
Last week, oil prices had fallen sharply on hopes that diplomacy would lead to a quick resolution of the conflict and allow shipping flows to normalize. Those expectations weakened after Iran’s response focused heavily on broader war-related demands, including an end to U.S. naval operations, sanctions relief, compensation for damage caused during the conflict, and recognition of Iranian control over the strait.
As a result, traders once again shifted focus back toward tightening supply conditions. The Strait of Hormuz remains largely closed, severely restricting one of the world’s most important energy corridors and keeping global crude balances under pressure. Analysts noted that the market has already lost roughly 1 billion barrels of supply over the past two months, and that even if shipping resumes, normalization would likely take considerable time.
Additional support came from signs of reduced global production and exports. OPEC output reportedly fell to its lowest level in more than two decades during April as the conflict disrupted regional flows, while Saudi crude exports to China are expected to decline further due to elevated prices and reduced availability.
Despite some isolated tanker movements through the strait, shipping activity remains far below normal levels. Energy markets continue to trade primarily on geopolitical developments, with price direction closely tied to the status of ceasefire negotiations, maritime security in the Gulf, and the timeline for any meaningful restoration of Middle Eastern oil flows.