Trump Rejects Iran Peace Proposal, Oil Prices Surge
Oil prices surged over 3% on Monday after US President Donald Trump rejected Iran's peace proposal, keeping tensions in the Middle East high. The rejection has reduced hopes of an immediate breakthrough, although diplomatic efforts have not ended.
Brent crude futures rose $3.43, or 3.29%, to $107.75 a barrel at 0540 GMT, while US West Texas Intermediate crude was at $94.55 a barrel, up $2.14, or 2.32%. The gains came despite concerns that the US may ban diesel exports to ease record prices.
Iran 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.
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. Meanwhile, 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.