Oil prices jumped on Tuesday as Donald Trump weighed Iran’s latest proposal to end the war.

The US president is unhappy with the latest Iranian ​proposal, a US official said on Monday. Iranian sources disclosed that Tehran’s ​proposal avoided addressing its nuclear programme until hostilities cease and Gulf shipping disputes are resolved.

Trump’s ⁠displeasure with the Iranian offer leaves the conflict deadlocked, with Iran shutting shipping flows through the Strait of ​Hormuz, which typically carries supply equal to about 20 per cent of global oil and gas consumption, and the US keeping ​in place its blockade of Iranian ports.

Brent crude rose to $108.13 per barrel, hovering near a three-week high, while US West Texas Intermediate went up to $96.48.

Both benchmarks are well above pre-war levels. Brent was trading at $72 before the US-Israeli war on Iran began on 28 February.

Asian stocks were broadly subdued at the opening. While MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.12 per cent, hovering near the record high it touched on Monday, Nikkei fell 0.5 per cent.

The S&P 500 eked out modest gains on Monday and was on course for a nearly 10 per cent gain for April. US stock futures were 0.1 per cent higher in Asian hours.

Indian shares are set to open lower on Tuesday, with GIFT Nifty futures pointing to the benchmark Nifty 50 opening below Monday’s close of 24,092.70. Both Nifty and Sensex snapped a three-session losing run on Monday, led by a rebound in technology stocks, but the broader momentum remained constrained by unresolved tensions around the Strait of Hormuz.

Elevated oil prices are a particular headwind for India, the world’s third-largest crude importer, heightening inflation risks, pressuring economic growth and widening the country’s import bill.

Foreign portfolio investors offloaded domestic stocks worth Rs 11.5bn ($122m) on Monday, extending their selling streak to a sixth straight session.

Vessel crossings showed signs of recovery over the weekend, according to the maritime intelligence firm Windward, but analysts warned increased movement was yet to translate into a surge in oil and gas flows.

Iran reportedly offered to end its blockade of the waterway without addressing its nuclear programme, passing the proposal to Washington through Pakistani mediators. But Mr Trump has made ending Iran’s atomic programme a condition for any deal.

Central banks are also in focus this week, with the Bank of Japan, the US Federal Reserve, the Bank of England, and the European Central Bank all due to announce policy decisions. All are expected to hold rates steady, but markets will be watching closely for signals about how policymakers plan to respond to the inflationary pressure from the war.

“The BOJ is likely to stay highly sensitive to market volatility,” Fred Neumann, chief Asia economist at HSBC, told Reuters. “Our base case remains one single 25 basis point hike this year in July, but a June rate rise becomes more likely if the Strait of Hormuz is still effectively closed after mid-May.”