Crude Oil Prices Surge at the Start of the Week After Trump Rejects Iran's Peace Proposal

WASHINGTON, KOMPAS.com - Oil prices surged after Israeli Prime Minister Benjamin Netanyahu warned that the conflict with Iran is not yet over. This is feared to increase tensions in the Middle East and further threaten energy supplies. Meanwhile, United States President Donald Trump rejected Iran’s counter-offer to end the war with the US and Israel. “I just read the response from what is called the Iranian representative. I don’t like it. Completely unacceptable!” he said, quoted from CNBC on Tuesday (12/5/2026). Meanwhile, Brent crude futures prices, used as an international benchmark for July delivery, rose more than 2 percent to $103.93 US dollars per barrel. As a note, WTI and Brent oil prices have risen approximately 40 percent since the first US and Israel war against Iran on 28 February 2026. Netanyahu stated that there is still nuclear material and enriched uranium that must be removed from Iran. “There are still enrichment sites that must be dismantled, there are still Iran-backed proxy groups, there are still ballistic missiles they want to produce, there is still much work to be done,” he said. Meanwhile, the crude oil market is currently protected by high inventories, the release of strategic oil reserves, weaker demand in developing countries, and occasional signs of potential de-escalation in the Middle East. Citi opines that risks to oil prices remain tilted upwards, as Iran retains significant control over the timing and terms of any potential deal to reopen the critical Strait of Hormuz energy route. “We assume that the regime will make a deal to reopen the Strait around the end of May, but we continue to see risks tilted towards delaying this timeline and/or a partial reopening, meaning disruptions will last longer,” the analysis stated.