Fears of prolonged Middle East tensions push crude prices higher while investors brace for fresh global uncertainty….
Oil prices climbed sharply in Asian trading on Monday after US President Donald Trump dismissed Iran’s latest conditions for ending the ongoing Middle East conflict, fueling fears of deeper instability across global energy markets.
The sharp reaction came as traders grew increasingly concerned about potential disruptions around the Strait of Hormuz, one of the world’s most critical oil transit routes with tensions between Washington and Tehran showing little sign of easing.
Trump, reacting to Iran’s latest response to a proposed peace framework, delivered a blunt message on social media.
“I have just read the response from Iran’s so-called ‘Representatives.’ I don’t like it, TOTALLY UNACCEPTABLE!” he wrote.
His remarks immediately intensified concerns that diplomatic efforts may be stalling, raising the possibility of further conflict and continued volatility in global commodity markets.
Iranian President Masoud Pezeshkian pushed back against pressure from Washington, insisting Tehran would not yield under threats.
“We will never bow down to the enemy, and if there is talk of dialogue or negotiation, it does not mean surrender or retreat,” Pezeshkian posted on X on Sunday.
Analysts say the widening gap between both sides is increasing uncertainty for investors already navigating fragile global market conditions.
Lloyd Chan, an analyst at Japanese banking giant MUFG, said Trump’s swift rejection of Iran’s demands signaled that a quick resolution now appears unlikely.
“President Trump’s swift rejection of these counter-demands underscores the wide gulf between both sides, pointing to a risk of prolonged uncertainty rather than rapid de-escalation,” Chan noted.
He added that energy markets are now building in a stronger geopolitical risk premium as fears grow over possible disruptions around Hormuz.
The impact was immediately visible in oil trading.
Brent crude surged 4.75 percent to $99.95 per barrel, while West Texas Intermediate jumped 4.16 percent to $105.50 a barrel as traders rushed to price in escalating risks.
Asian equities, however, delivered a mixed performance.
Japan’s Nikkei 225 slipped 0.36 percent, while Hong Kong’s Hang Seng Index lost 0.34 percent. Mainland China’s Shanghai Composite rose 0.89 percent, while South Korea’s KOSPI outperformed regional peers with a four percent rally driven largely by technology stocks.
In Tokyo, shares of Nintendo tumbled nearly 10 percent after the gaming giant warned that profits could weaken this year and announced plans to increase the price of its highly anticipated Switch 2 console.
Meanwhile, attention is also turning to a series of major diplomatic meetings expected this week in Asia.
US Treasury Secretary Scott Bessent is scheduled to visit Japan and South Korea before heading to China for high-level discussions linked to Trump’s upcoming summit with Chinese President Xi Jinping.
Beijing confirmed Monday that the summit will run from Wednesday through Friday, with the Middle East crisis expected to feature prominently during talks.
Bessent is expected to meet Japanese Prime Minister Sanae Takaichi on Tuesday, with currency policy and Tokyo’s recent efforts to support the weakening yen likely to dominate discussions.
In Seoul, the US treasury chief is also expected to hold talks with Chinese Vice Premier He Lifeng as Washington and Beijing continue delicate negotiations following last year’s tariff standoff.
“Economic security is national security,” Bessent wrote on X ahead of the trip.
Investors are now closely watching whether diplomacy can calm growing geopolitical tensions or whether the conflict could trigger a deeper shock across global energy and financial markets.
