Oil Prices Surge as US-Iran Peace Talks Stall

Oil prices have surged by over 3% as tensions in the Middle East remain elevated due to ongoing US-Iran peace talks being in a stalemate. Brent crude oil futures rose $2.60, or 2.49%, to $106.92 a barrel, while US West Texas Intermediate (WTI) crude was at $94.49 a barrel, up $2.08 or 2.25%. The increase in prices comes after US President Donald Trump rejected Iran's peace proposal last week.

Hamad Hussain, a senior climate and commodities economist at Capital Economics, attributed the jump in oil prices to Trump's rejection of the peace plan. He said that while diplomatic efforts have not ended, the rejection has reduced hopes of an immediate breakthrough.

The Saudi-led coalition in Yemen intercepted two ballistic missiles and two drones launched by the Iran-backed Houthis towards the kingdom on Saturday. Meanwhile, crude oil exports from key Middle East producers rebounded in September to 12.8 million barrels per day, the highest since the war started in February.