By: Economy Middle east

Oil prices climbed on Monday as concerns about supply intensified, a day after President Donald Trump described Iran’s response to a U.S. proposal as “unacceptable,” heightening market anxiety while the Strait of Hormuz remained largely shut and global supplies stayed constrained.

Brent crude futures rose by $4.48, or 4.42 percent, reaching $105.77 a barrel as of 8:34 UAE time GMT, while U.S. West Texas Intermediate (WTI) advanced $4.75, or 4.98 percent, to $100.17 a barrel.

These sharp gains followed losses of around 6 percent for both benchmarks last week, when traders had been positioning for a possible resolution to the 10-week-old conflict that might reopen the Strait of Hormuz to normal oil flows and ease pressure on supplies.

Trump is due to land in Beijing on Wednesday and is expected to raise Iran among several key issues in talks with Chinese President Xi Jinping, according to U.S. officials, linking Middle East tensions with wider U.S.-China strategic and economic discussions.

Saudi Aramco CEO Amin Nasser said on Sunday that roughly 1 billion barrels of oil have been removed from the market over the past two months, warning that energy markets will need time to rebalance even if exports through the region pick up again.