Oil Prices Hold Gains as US Evaluates Iranian Peace Proposal Amid Hormuz Blockade

Global oil benchmarks maintained their upward trajectory on Monday, reflecting heightened geopolitical tensions and severe supply constraints in the Middle East. West Texas Intermediate (WTI) traded near $96 per barrel, marking a 2.1% increase, while Brent crude settled above the $108 threshold. The price action is driven primarily by the status of the Strait of Hormuz, a critical artery for global energy shipments, which remains almost impassable. This blockade has created a significant supply vacuum, keeping a firm floor under crude prices despite emerging diplomatic signals. US President Donald Trump has convened meetings to review a proposal submitted by Tehran aimed at ending the current conflict. However, the administration has maintained strict 'red lines' regarding any potential deal, specifically emphasizing that any agreement must ensure Iran is prevented from acquiring nuclear weapons. Traders are currently balancing the potential for a diplomatic breakthrough against the immediate physical reality of the Hormuz closure. Until the strait is reopened or a definitive peace deal is reached, energy markets are expected to remain highly volatile with a strong upward bias due to the ongoing supply risk.