Trump Rejects Iran Peace Plan, Oil Prices Surge on Geopolitical Tensions
Oil prices rebounded 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%. 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.
The rejection of Iran's proposal has kept geopolitical risks elevated, with the Houthis and Iran continuing their attacks on Saudi Arabia, leaving regional supply flows vulnerable. Yemen's Saudi-led coalition said early on Saturday it had intercepted two ballistic missiles and two drones launched by the Iran-backed Houthis towards the kingdom.
Crude oil exports from key Middle East producers rebounded in September to 12.8 million barrels per day, the highest since the war started in February, preliminary data from Kpler showed on Monday. The rebound came following a recovery in shipments via the Strait of Hormuz, which were set to hit about 7.4 million bpd this month.