Oil Surges as Trump Rejects Iranian Peace Proposal
Oil prices surged over 3% on Monday after US President Donald Trump rejected an Iranian proposal aimed at ending the conflict and reopening the Strait of Hormuz. The rejection prompted traders to rebuild some of the geopolitical premium that was removed from oil prices on Friday.
Brent crude is currently trading at around $108.30 per barrel, while WTI crude is trading at approximately $95.93 per barrel. Both benchmarks are sharply higher than their Friday settlements.
The physical supply picture is improving, with preliminary Kpler data showing exports from major Middle East producers rebounded to 12.8 million barrels per day in September, the highest since the war began. However, security risks around Saudi Arabia are still supporting crude prices, following a weekend attack by Iran-backed Houthis.