Commodities
Oil Prices Soar After White House Rejects Iran's Hormuz Reopening Plan
The oil market experienced its sharpest one-day gain in weeks after the White House rejected Iran's Hormuz reopening plan. As a result, November WTI futures jumped 4.24% to $96.33 per barrel, while Brent rose 2.7% to $107.11.
The rejection of Iran's proposal, which included lifting oil sanctions and releasing frozen funds in exchange for reopening the Strait of Hormuz, sent crude prices surging on Monday. The market had previously priced a deal, but now it is pricing a physical supply shock that diplomacy has not resolved.
Saudi Arabia's crude output collapsed to 6.24 million barrels per day in August due to attacks on its two alternative routes to move crude to market: the East-West pipeline and the Red Sea shipping lane.