Trump Rejects Iran Peace Deal, Oil Prices Soar Amid Ongoing Tensions
Oil prices surged on Monday after US President Donald Trump rejected a peace deal from Iran to resolve their conflict and reopen the Strait of Hormuz. Brent crude futures rose $1.32, or 1.27%, to $105.64 a barrel by 0036 GMT, while US West Texas Intermediate crude was at $93.11 a barrel, up 70 cents, or 0.76%.
The deal was announced last week at the UN General Assembly in New York, with Iran saying it had been transmitted to the Americans via Qatari mediators. Trump said on Saturday he rejected the plan but told Axios in a phone interview that he expected US negotiators to engage in more talks this week.
Geopolitical risks remain elevated as the Houthis and Iran continued their attacks on Saudi Arabia, leaving regional supply flows vulnerable, according to ANZ analysts. The Yemen's Saudi-led coalition said early on Saturday it had intercepted two ballistic missiles and two drones launched by the Iran-backed Houthis towards the kingdom.
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, preliminary data from Kpler showed on Monday.