Ammon News - Oil prices rallied on Monday, a day after President Donald Trump said Iran's response to a U.S. proposal was "unacceptable," raising supply fears as the Strait of Hormuz stayed largely closed, which kept the global market ​tight.

Brent crude futures climbed $4.16 or 4.11% to $105.45 a barrel at 0340 GMT. U.S. West ​Texas Intermediate was at $99.80 a barrel, up $4.38, or 4.59%.

Last week, both contracts recorded ⁠6% weekly losses on hopes for an imminent end to the 10-week-old conflict that would allow ​oil transit through the Strait of Hormuz.

"The oil market continues to trade like a geopolitical headline ​machine, with prices swinging sharply based on every comment, rejection, or warning coming from Washington and Tehran," said Priyanka Sachdeva, senior market analyst at Phillip Nova.

Trump is scheduled to arrive in Beijing on Wednesday and is expected to discuss ​Iran among other topics with Chinese President Xi Jinping, according to U.S. officials.

Reuters