Oil prices moved higher on Monday as financial markets responded to reports that President Trump rejected Iran's latest ceasefire overture, heightening concerns about potential disruptions to energy supplies from one of the world's most oil-rich regions. Brent crude and West Texas Intermediate both rose as traders priced in the possibility of a prolonged or widening conflict.

The diplomatic setback came as Israeli Prime Minister Benjamin Netanyahu declared the war would not be considered over until enriched uranium is removed from Iran, signaling that a negotiated end to hostilities remains distant. The statement added to investor unease about the stability of Middle Eastern oil supply routes, including critical shipping lanes in the Persian Gulf.

Despite the geopolitical tension, U.S. gas prices had posted slight declines at the pump to begin the week, according to recent tracking data. Analysts cautioned, however, that sustained conflict or a significant escalation could quickly erase those modest consumer savings and push fuel costs higher in the weeks ahead.

Saudi Aramco reported a 26 percent jump in first-quarter profit as a key pipeline reached capacity, a development that underscores both the financial stakes for major producers and the tight supply dynamics that make the region particularly sensitive to conflict risk. The earnings report arrived just as geopolitical uncertainty was beginning to ripple through commodity markets.

Supply chain analysts warned that markets may be underestimating the potential impact of an Iran conflict, noting a degree of complacency in how businesses have prepared for disruptions. Insurance costs for tankers transiting the region have already begun rising, and logistics planners are revisiting contingency routes. The combination of stalled diplomacy, firm statements from Israeli leadership, and nervous energy markets leaves the outlook for oil prices unusually uncertain heading into the coming week.