Oil prices rose sharply across Asian markets on Monday after U.S. President Donald Trump dismissed Iran’s latest conditions for ending hostilities in the Middle East, raising concerns over possible disruptions to oil supplies through the Strait of Hormuz.
Trump’s outright rejection of Tehran’s response to his peace overture heightened the risk of renewed fighting and underscored the widening gap between the two sides. “I have just read the response from Iran’s so‑called ‘Representatives.’ I don’t like it – totally unacceptable,” the president said ahead of a planned visit to China, where the conflict is expected to dominate diplomatic talks.
Iranian President Masoud Pezeshkian countered on X, asserting that a willingness to discuss does not equate to surrender. “We will never bow down to the enemy,” he wrote, emphasizing Iran’s resolve to continue negotiations without conceding.
Lloyd Chan, an analyst at Japan’s MUFG Bank, said the president’s swift dismissal “underscores the wide gulf between both sides, pointing to a risk of prolonged uncertainty rather than rapid de‑escalation.” For the oil market, Chan warned that the episode “suggests a persistent geopolitical risk premium as Hormuz disruptions drag on.”
The market reaction was immediate. Brent crude jumped 4.75 % to $99.95 a barrel, while U.S. WTI rose 4.16 % to $105.50. Asian equities moved in mixed directions: Japan’s Nikkei slipped 0.36 % to 62,486.84, Hong Kong’s Hang Seng fell 0.34 % to 26,303.16, while Shanghai’s Composite gained 0.89 % to 4,216.96. South Korea’s KOSPI rose about four percent, driven by gains in technology stocks.
In Tokyo, Nintendo shares tumbled nearly 10 % after the gaming giant warned of lower profit forecasts and announced a price increase for its upcoming Switch 2 console. The broader market sentiment reflected the lingering uncertainty surrounding the Middle‑East conflict.
U.S. Treasury Secretary Scott Bessent, who will travel to Japan, South Korea and China later this week, is set to meet Japanese Prime Minister Sanae Takaichi and South Korean officials, with discussions likely to include recent yen‑support measures by the Tokyo government. In Seoul, Bessent is scheduled to meet Chinese Vice‑Premier He Lifeng. “Economic security is national security,” Bessent posted on X, highlighting the intertwining of trade and geopolitical stability.
The timing of the visits comes as President Trump prepares for a high‑stakes summit with Chinese President Xi Jinping in Beijing, confirmed for Wednesday‑Friday. The two leaders previously brokered a one‑year trade truce in October, after a year of reciprocal tariffs.
Overall, the sharp rise in oil prices reflects heightened geopolitical risk premiums tied to the Middle‑East stalemate, while equity markets remain cautious ahead of the forthcoming U.S.–China dialogue and the potential impact on global trade flows.
