Trump Rejects Iran Peace Plan, Oil Prices Soar
Oil prices surged at the start of the week in response to US President Donald Trump's rejection of Iran's peace plan. The proposal, delivered through Qatari mediators, aimed to end the conflict and reopen the Strait of Hormuz.
Tensions in the Middle East remain elevated despite the rejection, with ANZ analysts warning that geopolitical risks are still high. Yemen's Houthi rebels and Iran continue attacks on Saudi Arabia, threatening oil supplies from the region.
The price of North Sea Brent crude rose by 3% to $107.38 per barrel at around 7:50 CEST, while US light crude WTI increased by 2.1% to $94.32 per barrel. The latest data shows that oil exports from major Middle Eastern producers reached a new high in September, with Saudi Arabia and the UAE increasing their exports.
Trump initially said he had rejected the plan on Saturday but later told Axios in a phone interview that US negotiators would continue talks this week. However, his rejection has already sparked an increase in oil prices.