WASHINGTON (TNND) — Oil prices surged Monday after President Trump cast doubt on whether the United States will reach or extend a framework deal with Iran, renewing market fears of a wider escalation and potential disruption to energy shipments through the Strait of Hormuz.
Brent crude (the North Sea oil that serves as the leading global benchmark for international oil prices) briefly climbed above $91 a barrel before settling at $90.87, up 2.65%. U.S. benchmark West Texas Intermediate closed at $84.50, up 2.5%. Prices had been roughly flat to lower earlier in the day before jumping following Trump’s remarks.
Trump said Iran wants a deal but not one he considers acceptable, while reiterating that Iran cannot acquire nuclear weapons.
The June framework, reached through Pakistani mediation, set a 60-day negotiating window that is nearing expiration without a comprehensive settlement. The renewed uncertainty helped drive concerns about further escalation and possible interruptions to oil shipments through the Strait of Hormuz, a key global chokepoint.
Trump claimed U.S. forces have “total control” of the Strait of Hormuz through a naval blockade and said the waterway is open. But shipping data cited in the notes contradicted the claim of normal access: only three ships crossed the strait Sunday and 10 on Saturday, compared with roughly 130 per day before the war. Strait traffic fell 19.5% last week compared with the already-depressed previous week. Several oil tankers have reportedly been attacked in recent days.
Oil prices are now nearly 50% higher than at the beginning of 2026 and more than 25% higher since the Iran war began on Feb. 28. U.S. gasoline averaged $4.06 per gallon Monday, up 36% since the war began.
Financial markets also reacted. After Trump’s comments, borrowing costs in the U.S. moved higher. Interest rates on longer-term government debt rose to levels not seen in years, including the 30-year rate, which reached its highest point since 2007. The stock market also fell, with the S&P 500 dropping about 0.4% and the tech-heavy Nasdaq falling about 0.3%
Trump also threatened military action against Oman if it interfered with U.S. operations concerning the Strait of Hormuz.