WTI crude oil prices jumped after U.S. President Donald Trump rejected a peace proposal from Iran aimed at reopening the critical Strait of Hormuz shipping lane. This rejection has heightened market uncertainty over the future of global oil supplies, as the strait is a major chokepoint for crude shipments. While Trump indicated that further talks may occur, the current diplomatic setback has reintroduced a significant geopolitical risk premium into oil prices, overriding recent signs of recovering Middle Eastern supply.