Oil prices jump over 2% as Trump rules out extending framework deal with Iran

Oil prices jumped more than 2% on Monday after US President Donald Trump ruled out extending the framework agreement with Iran, heightening concerns over tensions surrounding the Strait of Hormuz.

International benchmark Brent crude rose 2.4% to $90.60 per barrel as of 1850GMT, while US benchmark West Texas Intermediate climbed 2.2% to $84.20.

Trump told reporters that he was not seeking an extension of the agreement reached with Iran in June through Pakistani mediation, as its 60-day negotiating window neared expiration without a comprehensive settlement.

"They want to make a deal, but they are not going to make the kind of a deal that I feel is necessary," Trump said, reiterating that Iran would not be allowed to acquire nuclear weapons.

His remarks renewed concerns that stalled diplomacy could trigger a further escalation and disrupt energy shipments through the Strait of Hormuz, a critical route for global oil trade.

Trump also claimed that the US had established "total control" over the strait through its blockade.

"The strait is open, and the oil prices are coming down, and they will continue to come down unless we decide to do something far more drastic than we are doing," he said.

Oil prices had traded lower earlier Monday as investors weighed geopolitical risks against indications that Gulf producers were maintaining substantial shipments through the waterway, limiting fears of an immediate supply shock.