Trump Rejects Iran Peace Plan, Oil Prices Surge Amid Elevated Tensions
Oil prices surged on Monday after US President Donald Trump rejected an Iranian peace proposal to resolve their conflict and reopen the Strait of Hormuz. The move has kept tensions in the Middle East elevated, with geopolitical risks remaining high.
Brent crude futures rose $1.32, or 1.27%, to $105.64 a barrel by 0036 GMT, while US West Texas Intermediate (WTI) crude was at $93.11 a barrel, up 70 cents, or 0.76%. The rebound came despite concerns that the US may ban diesel exports to ease record prices.
Iran announced its peace proposal last week at the UN General Assembly in New York, saying it had been transmitted to the Americans via Qatari mediators. Trump said he rejected the plan, but expected US negotiators to engage in more talks this week.
The Houthis and Iran continued their attacks on Saudi Arabia, leaving regional supply flows vulnerable, according to ANZ analysts. Yemen's Saudi-led coalition intercepted two ballistic missiles and two drones launched by the Houthi rebels towards the kingdom.