Oil prices rose on Monday after US President Donald Trump dismissed Iran’s conditions for ending the ongoing Middle East conflict, raising fears of prolonged tensions and possible disruptions to global oil supply routes.
Trump described Iran’s response to his latest peace proposal as “totally unacceptable,” increasing concerns over continued instability around the Strait of Hormuz.
“I have just read the response from Iran’s so-called ‘Representatives.’ I don’t like it — Totally Unacceptable!” Trump said ahead of his scheduled visit to China later this week, where the conflict is expected to dominate discussions.
Responding on Monday, Iranian foreign ministry spokesman Esmaeil Baqaei, said Tehran was not seeking concessions but rather recognition of its “legitimate rights.”
According to Baqaei, Iran is demanding an end to the war, the lifting of the US naval blockade, and the release of Iranian assets frozen in foreign banks.
Analysts said Trump’s rejection of Iran’s demands signaled a widening gap between both sides and reduced hopes for a quick de-escalation.
“President Trump’s swift rejection of these counter-demands underscores the wide gulf between both sides, pointing to a risk of prolonged uncertainty rather than rapid de-escalation,” said Lloyd Chan of Japanese bank MUFG.
He added that continued tensions around the Strait of Hormuz could sustain a geopolitical risk premium in oil markets.
Asian stock markets reacted cautiously to the developments. Tokyo closed 0.5 percent lower, while Hong Kong was largely unchanged. Seoul, however, gained 4.3 per cent, driven by strong performances in technology stocks.
In Japan, shares of Nintendo fell nearly 10 per cent after the gaming giant warned of weaker profits this year and announced a price increase for its Switch 2 console.
European markets also opened mixed, with Frankfurt and Paris trading lower while London posted slight gains.
Meanwhile, US Treasury Secretary Scott Bessent is expected to visit Japan and South Korea before proceeding to China for Trump’s summit with Chinese President Xi Jinping.
China’s foreign ministry on Monday said Beijing was ready to work with the United States “in the spirit of equality, respect, and mutual benefit” to strengthen cooperation and manage differences amid growing global uncertainty.
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