Trump Rejects Iran Peace Plan, Oil Prices Surge
Brent crude oil prices rose over 3% on Monday after US President Donald Trump rejected Iran's peace proposal to resolve their conflict and reopen the Strait of Hormuz, keeping tensions in the Middle East elevated.
The rejection came despite Iran announcing its peace plan at the UN General Assembly in New York last week, saying it had been transmitted to the Americans via Qatari mediators. Trump told Axios on Sunday that he expected US negotiators to engage in more talks this week, although hopes for an immediate breakthrough have reduced.
An analyst from SS WealthStreet noted that 'the rejection has reduced hopes of an immediate breakthrough, although diplomatic efforts have not ended.' The firm's founder, Sugandha Sachdeva, also warned that Brent futures could face resistance at $120 a barrel and may pull back if shipping improves or talks make progress.