Oil prices surged on Monday following a warning from Israeli Prime Minister Benjamin Netanyahu that the confrontation with Iran remains “not over.” This statement has intensified concerns that hostilities in the Middle East may resume, thereby posing renewed threats to global energy supplies. Concurrently, U.S. President Donald Trump rejected a counteroffer from Iran aimed at ending the ongoing conflict with both the United States and Israel. In a forceful response, President Trump characterized the Iranian proposal as “TOTALLY UNACCEPTABLE,” underscoring the widening diplomatic rift between the parties.
The immediate impact on energy markets was pronounced. U.S. West Texas Intermediate (WTI) futures for June delivery rose by 3.08 percent, reaching USD 95.42 per barrel, while the international benchmark, Brent crude futures for July delivery, advanced by 3.16 percent to USD 104.49 per barrel. In an interview,” Prime Minister Netanyahu elaborated on the unresolved threats posed by Iran, citing the presence of nuclear material, specifically enriched uranium, that must be removed from Iranian territory. He further noted that enrichment sites remain to be dismantled, that Iran continues to support proxy groups, and that the development of ballistic missiles persists, concluding that significant work remains to be done.
Oil Market Future Outlook
Analysts observed that crude oil prices could climb further should Iran and the United States fail to reach a diplomatic agreement. They noted that while markets have thus far been cushioned by high inventory levels, releases from strategic petroleum reserves, weakened demand in developing economies, and intermittent signs of potential de-escalation in the region, the overall risk environment remains skewed to the upside. This is largely attributable to Iran’s substantial leverage over the timing and terms of any prospective deal to reopen the strategic Strait of Hormuz, a critical artery for global energy transit.
