Trump Rejects Iran Peace Plan, Oil Prices Surge Amid Ongoing Middle East Tensions
Oil prices surged on Monday after US President Donald Trump rejected Iran's peace proposal 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 rejection of the peace plan kept geopolitical tensions in the Middle East elevated.
Iran had announced a 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 on Saturday he rejected the plan but told Axios in a phone interview on Sunday that he expected US negotiators to engage in more talks this week.
ANZ analysts noted that geopolitical risks remain elevated due to ongoing attacks by Iran-backed Houthis on Saudi Arabia, leaving regional supply flows vulnerable. The analysts also mentioned that refined oil products remain a pressure point, with record US diesel prices intensifying inflation risks and prompting renewed debate over potential export curbs.