• Oil prices jumped $3 a barrel amid US-Iran tensions.
• The Strait of Hormuz remains largely closed, impacting global energy supplies.
• President Trump rejected Iran's response to peace talks, dampening hopes for resolution.
• Saudi Aramco warns of a significant loss of oil supply, approximately 1 billion barrels.
• Market analysts are watching Trump's upcoming discussions in China.

Oil prices experienced a surge of $3 a barrel as tensions between the United States and Iran escalated, compounded by the ongoing closure of the Strait of Hormuz. Brent crude futures rose by $3.18 or 3.14% to reach $104.47 a barrel, while U.S. West Texas Intermediate climbed $3.09 or 3.24%, reaching $98.51 a barrel. This surge follows a previous gain of 1.23% on Friday, reflecting the tightening of global energy supplies, according to Reuters and Channel News Asia.

The 10-week conflict between the U.S. and Iran showed no signs of abating as President Donald Trump dismissed Iran's response to a peace proposal as "unacceptable", reducing hopes for a swift resolution that could allow oil transit through the Strait of Hormuz. The focus now turns to Trump's upcoming meeting in Beijing with Chinese President Xi Jinping, where there is anticipation he may solicit Beijing's influence over Iran to secure a ceasefire, according to Bangkok Post and India Times.

Saudi Aramco's CEO Amin Nasser warned that the market has lost about 1 billion barrels of oil over the last two months. This significant loss underscores the challenges energy markets face, which will take time to stabilize even if oil flows resume. Recent shipping data indicates that two tankers managed to exit the Strait of Hormuz last week while disabling their tracking systems to evade potential Iranian attacks, highlighting the risks involved in maintaining oil exports from the troubled region, according to Reuters and Channel News Asia.