Oil prices surged on Monday after U.S. and Iran failed to settle a peace deal, sending Brent up over 3% to $105 a barrel while U.S. West Texas Intermediate climbed more than 4% to just above $99. on the global market, investors watched the spike as tensions in the Persian Gulf intensified for the first time.

President Trump blasted Iran’s proposal as “TOTALLY UNACCEPTABLE” on social media, refusing to disclose details. Tehran said it seeks a 30‑day truce that would lift its blockade of the Strait of Hormuz, a choke point that channels roughly a third of global oil shipments and could reshape regional power dynamics for energy investors worldwide.

Wall Street reacted with a modest dip; S&P 500 futures fell 0.1% as traders absorbed the price jump. Asian markets mixed, with South Korea’s KOSPI up 4% while Japan’s Nikkei slipped under 1%. European indices stayed flat, reflecting uncertainty around energy costs that could push inflation higher and press central banks to act soon again.

The uptick underscores how geopolitical friction can squeeze supply chains and inflate crude prices, directly affecting gasoline costs. Despite a slight dip, the national average gasoline price remains roughly 52% higher than pre‑war levels, showing that even temporary setbacks in diplomatic talks can have lasting economic repercussions for consumers and businesses alike in 2026.