Oil prices climbed as Iran insisted on its seven-day proposal to reopen the critical Strait of Hormuz, a plan that U.S. President Donald Trump had already rejected, potentially delaying the reopening of this key waterway even further.

Brent crude rose to around $106 per barrel, while WTI crude remained above $93. In an interview with Axios on Sunday, Trump said Tehran was seeking a deal that the U.S. might have agreed to about a year ago, and said Iran had pushed too far this time. According to Axios, the U.S. president said he expects negotiations to restart this week.

Suvro Sarkar, head of energy research at DBS Bank, said the oil price gain may be limited because the market did not expect the strait to reopen within seven days. "We don't think this will change much," Sarkar said regarding Trump's rejection.

Oil prices were volatile last week amid mixed signals on negotiations, the recovery of Middle East oil supply, and uncertainty over U.S. measures to curb record diesel prices. Trump said Washington is considering relevant measures "very seriously."

As the U.S.-Iran conflict enters its eighth month, Brent crude has risen about 75% this year and is on track for a third consecutive monthly gain, further intensifying inflationary pressure. The prospect of restarting negotiations remains unclear. According to a person familiar with the matter, negotiators had explored an agreement that would include reopening the waterway and Washington lifting its blockade on Iranian ports. This would resemble the memorandum of understanding reached in mid-June, which led to a fragile ceasefire that later collapsed.

Traders will continue to closely monitor physical cargo flows through the Strait of Hormuz. Before the conflict broke out, the strait accounted for about one-fifth of global crude oil and liquefied natural gas volumes. Trump said a "record amount" of oil passed through the strait on Saturday night, while Fars News Agency reported that Iranian forces struck vessels using unauthorized routes through the waterway.

The situation in the region remains tense. The Saudi-led coalition in Yemen said on Saturday that air defense systems intercepted Houthi drones heading toward Riyadh, as well as a missile targeting Khamis Mushait in the south. Alerts were also issued in Abha and Jazan, where Saudi Aramco's energy facilities are located.

Brent crude futures for November settlement rose 1.8% to $106.2 per barrel. WTI crude futures for November delivery rose 1.3% to $93.6 per barrel.