Trump Rejects Iran Deal: Brent Oil Surges Above $106 Amid Geopolitical Risk

Brent oil prices surged over 2% on Monday after US President Donald Trump rejected Iran's latest peace proposal, pushing Brent crude back toward levels seen during this month's Middle East supply shock.

The price of Brent reached $106.92 a barrel, while WTI climbed to $94.49 according to Reuters. The rejection of Tehran's proposal comes as further US-Iran talks are expected this week.

Crude exports from major Middle Eastern producers rebounded to about 12.8 million barrels per day in September, their highest level since the conflict began in February. Shipment through the Strait of Hormuz is also expected to recover as Saudi Arabia and the UAE increase exports.

The oil market remains tight enough that renewed problems around Hormuz or regional infrastructure could quickly create another shortage. Traders are pricing a fragile recovery, not a return to normal, as diplomatic efforts remain the main swing factor in determining future prices.