Trump Rejects Iran Peace Deal, Oil Prices Rebound

Oil prices rebounded more than 2% on September 28 after US President Donald Trump rejected a proposed peace deal from Iran to resolve their conflict and reopen the Strait of Hormuz.

Brent crude futures rose $2.60, or 2.49%, to $106.92 a barrel, while US West Texas Intermediate traded at $94.49 a barrel, up $2.08, or 2.25%.

Iran announced the peace proposal last week at the UN General Assembly in New York, saying it had been passed to the Americans through Qatari mediators. Trump said on September 26 that he had rejected the plan but told Axios in a phone interview that he expects US negotiators to hold more talks this week.

Geopolitical risks remain elevated as the Houthis and Iran continued their attacks on Saudi Arabia, leaving regional supply flows vulnerable, analysts at ANZ said in a note.