Trump Rejects Iran Peace Plan, Oil Prices Soar on Middle East Tensions

Oil prices continued their upward trend on Monday after US President Donald Trump rejected Iran's latest proposal to cease hostilities and reopen the Strait of Hormuz.

The WTI Oil price rose nearly 3.5% to reach $94.80, its highest level in recent sessions, as investors remain concerned about a potential supply shortage due to ongoing tensions in the Middle East.

Trump's rejection of Iran's proposal was seen as a major setback for any hopes of a breakthrough in US-Iran talks, with analysts at Deutsche Bank noting that 'there was little sign of a breakthrough over the weekend' and bond yields and oil prices climbed again on Monday morning.

The US President said that Tehran's peace plan was not acceptable and threatened to resume bombings after the US midterm elections, while Iran reiterated that it would not soften its conditions for reopening the Strait of Hormuz, including demands for sanctions relief, access to frozen assets, and an end to US blockade measures.