[MARKET ANALYSIS] Oil futures jumped after Trump rejected Iran's response to the peace plan

The jump in oil futures comes after President Trump's dismissal of Iran's response to the peace plan, labeling it unacceptable.

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[MARKET ANALYSIS] Oil futures jumped after Trump rejected Iran's response to the peace plan

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Iranian official says that Iran's response to the US plan is realistic and positive, according to Al Jazeera

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WTI/Brent: WTI Jun'26 +3.8% / Brent Jul'26 +3.4%

  • Oil futures were lifted at the reopen following US President Trump's rejection of Iran's response to the peace plan, which he called totally unacceptable, while Iran's proposal was said to have stressed the need for the US to pay compensation for war damages and emphasised Iran’s sovereignty over the Strait of Hormuz. This lifted Brent to briefly above USD 105/bbl, and WTI rose to just shy of the USD 100/bbl level, where it then hit resistance and pared some of the moves. In relevant news, Saudi Aramco said that a reopening of the Strait of Hormuz is no quick fix and warned that it would take months for the market to return to normal, even if the crucial waterway was reopened immediately, while Qatar sent its first LNG shipment through the Strait of Hormuz for the first time since the start of the Iran war, and Pakistan is in talks with Iran to allow more Qatar LNG cargoes to transit through Hormuz.

Gold: -0.4%

  • Mildly retreated beneath the USD 4,700/oz level amid a firmer buck and higher oil prices.

Copper: +0.5%

  • Remained afloat following last week's rally and as participants digest firmer-than-expected Chinese trade and inflation data.
Context

This rejection exacerbates geopolitical tensions, particularly affecting supply prospects in the Strait of Hormuz, which is vital for global oil transport. The significant uptick in Brent and WTI prices highlights how delicate the geopolitical landscape remains and its direct implications for energy markets.

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