Oil prices trimmed some gains in Asian trade on Monday after a media report that Iran had sent the U.S. a new proposal to reopen the Strait of Hormuz.
But crude still remained largely upbeat after attempts at more U.S.-Iran peace talks fell through over the weekend, while flows through Hormuz remained scant.
Brent oil futures rose 1.2% to $106.64 a barrel by 00:31 ET (04:31 GMT), while West Texas Intermediate crude futures rose 0.9% to $95.21 a barrel.
Brent had risen as high as $107.97 earlier in the day.
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Iran offers new proposal to reopen Hormuz- Axios Iran offered the U.S. a new proposal to reopen the Strait of Hormuz and end the war, Axios reported on Sunday.
The offer also proposes postponing discussions over Iran nuclear program to a later date, the Axios report said-- a point that is likely to draw objections from Washington.
Iran handing over its uranium and ceasing all nuclear activities have been two major demands by the U.S. in the war. Tehran has largely rejected said demands, 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 Hormuz before any major peace talks can take place. Iran has in turn called for the lifting of a U.S. naval blockade.
US-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.
While Washington and Tehran have not engaged in any direct hostilities since agreeing to a ceasefire, tensions between the two remain high.
Oil flows through Hormuz, a major shipping channel for energy markets, showed few signs of improving over the weekend, keeping markets largely on edge over supply disruptions in crude.
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 effectively blocked Hormuz since late-February, in response to U.S.-Israeli hostilities. The move cut off roughly 20% of the world’s crude supply.
