Trump Rejects Iran Peace Proposal, Oil Prices Spike
Oil prices surged over 1% on September 28 after US President Donald Trump rejected an Iranian peace proposal aimed at resolving the conflict and reopening the Strait of Hormuz, keeping tensions in the Middle East elevated.
Iran presented its proposal at the UN General Assembly in New York last week, saying it had been passed to the United States through Qatari mediators. Trump said he had rejected the proposal on Saturday but told Axios that US negotiators would hold further talks this week.
Brent crude futures rose $1.65 (1.50%) to $106 a barrel, while US West Texas Intermediate crude was at $93.40 a barrel, up 99 cents (1.10%). Geopolitical risks remained high as the Houthis and Iran continued attacks on Saudi Arabia.
Goldman Sachs has outlined a scenario where oil prices could rise as high as $120 a barrel if attacks on vessels in the Middle East intensify, while US diesel exports might be restricted to ease record prices.