Oil Prices Soar to Over $106 Per Barrel Amid Escalating Middle East Tensions

US President Donald Trump's rejection of an Iranian peace proposal has sent oil prices surging to over $106 per barrel. The Brent crude futures price rose by 1.50% on Monday, while US West Texas Intermediate crude increased by 1.10%.

The tension in the Middle East remains high as Iran-backed Houthis continue to launch attacks on Saudi Arabia, disrupting regional oil supply flows. Despite this, crude oil exports from key Middle Eastern producers recovered in September to 12.8 million barrels per day, driven primarily by higher exports from Saudi Arabia and the United Arab Emirates.

An increase in shipping risks has become a major driver of oil prices, according to Daan Struyven, co-head of global commodities research at Goldman Sachs. The bank expects oil prices to rise as high as $120 per barrel if attacks on vessels in the Middle East intensify, but return to around $80 per barrel if exports normalize.