Oil prices climbed on renewed tensions after Iran refused to soften demands for reopening the Strait of Hormuz, a critical waterway. Brent crude advanced above $106 per barrel, while West Texas Intermediate approached $94. The standoff stems from Tehran's seven-day proposal, rejected by US President Donald Trump, who signaled negotiations could resume this week.

Trump suggested Iran has "overplayed its hand" after conditions Tehran proposed were previously acceptable to Washington. Brent is up over 70% year-to-date and on track for a third monthly gain, as the US-Iran conflict enters its eighth month, adding inflationary pressures. Traders are monitoring physical flows through the strait, which previously handled about a fifth of global crude and liquefied natural gas.

Regional tensions remain high, with Saudi-led forces intercepting Houthi drones and missiles targeting southern Saudi Arabia and Aramco facilities. Trump also stated Washington is looking "very seriously" at measures to curb record diesel prices.