Oil prices rose on Monday, as negotiations between the U.S. and Iran appeared to be stalled, leaving constraints on crude supply flows through the Strait of Hormuz in place.

Brent oil futures, the global benchmark, rose 2.5% to $107.92 a barrel by 05:55 ET (09:55 GMT), while U.S. West Texas Intermediate crude futures rose 2.1% to $96.38 a barrel.

However, investors were keeping tabs on media reports that Iran has offered the U.S. a new proposal to reopen the Strait of Hormuz and end the war. The offer, which was first reported by Axios, also proposes postponing discussions over Iran nuclear program to a later date. 

This point that is likely to draw objections from Washington, which has made Iran handing over its uranium and ceasing all nuclear activities major demands. Tehran has largely rejected these, although the status of Iran’s nuclear program, after debilitating U.S. strikes in mid-2025, remains uncertain. 

The U.S. has repeatedly called for a reopening of Strait of Hormuz before any major peace talks can take place. Iran has in turn called for the lifting of a U.S. naval blockade of Iranian ports.

U.S.-Iran talks fall through, Hormuz disruptions remain

U.S. President Donald Trump cancelled a planned trip by U.S. officials to Pakistan for talks on Iran over the weekend, shortly after Iranian officials left Islamabad.  The two sides have remained at odds, even after Trump indefinitely extended a ceasefire with Iran earlier in April. 

Oil flows through the Strait of Hormuz, a major shipping channel for energy markets, showed few signs of improving over the weekend. Adding to concerns over tighter oil supplies, U.S. Treasury Secretary Scott Bessent said the U.S. did not plan to renew a waiver allowing the purchase of Russian and Iranian oil currently at sea. 

Washington had briefly allowed the purchases to offset some supply disruptions stemming from the Iran war. 

Iran has effectively blocked the Strait of Hormuz since late-February in response to joint U.S.-Israeli attacks, threatening to cut off roughly 20% of the world’s crude supply.