Oil Prices Surge 3% as Trump Rejects Iran Deal Draft

In a move reflecting the return of geopolitical friction to energy markets, oil prices surged 3% after President Trump rejected the current draft of a peace deal with Iran. According to reports, Brent crude rose above $94 and WTI topped $90 after the U.S. administration requested stronger language regarding Iran's nuclear commitments. This sudden stall in negotiations has fueled uncertainty over the timeline for fully reopening the Strait of Hormuz to global energy shipments.

This escalation comes at a time when markets were anticipating a diplomatic breakthrough to ease supply constraints, with analysts comparing this move to previous pressures that led to sharp volatility in energy prices. Looking at sector peers, shares of majors like ExxonMobil and Chevron saw positive movement in response to rising crude prices, per market data. Energy experts cited in Bloomberg reports noted that continued restrictions in the Strait of Hormuz could push geopolitical risk premiums significantly higher in the coming weeks.

Technically, Brent crude stood at $94.15 and WTI at $90.20 (at close June 5, 2026), placing immediate resistance levels under scrutiny if tensions persist. Traders should watch for Fed Chair Powell's speech on May 31, 2026, alongside Manufacturing PMI data from China and the U.S. in early June, as these catalysts will provide clearer insight into global demand expectations amid these political pressures.