Brent crude rose to $105.70 after Trump rejected Iran’s proposal regarding the Strait of Hormuz
Kyiv • UNN
Brent rose to $105.70 after Trump rejected Iran’s proposal regarding the Strait of Hormuz. Markets fear a new wave of inflation.
Global oil prices rose after U.S. President Donald Trump rejected Iran’s latest proposal to restore operations in the Strait of Hormuz. Brent crude rose 1.3% to approximately $105.70 per barrel, Bloomberg reports, according to UNN.
Details
Iran proposed restoring full operations on one of the world’s most important oil routes within 7 days, but Trump rejected the terms proposed by Tehran. At the same time, the U.S. president said he expects negotiations to resume as early as this week.
The rise in oil prices heightened concerns about inflation. The yield on 10-year U.S. Treasury bonds rose by 4 basis points to 5.20%, while S&P 500 futures fell 0.2%.
Higher oil prices put pressure on global markets
Against the backdrop of rising energy prices, gold fell by 0.7% to approximately $4,255 per ounce. The dollar, by contrast, strengthened against most major global currencies.
WTI crude rose 0.9% to $93.26 per barrel. Last week, the average yield on global bonds exceeded 4% for the first time since 2007, intensifying concerns about borrowing costs and the outlook for the global economy.
Additional pressure is being created by expectations of further rate hikes in the United States. Traders are currently pricing in at least one more 0.25-percentage-point Fed rate hike by the end of the year.