Trump Rejects Iran Peace Proposal, Oil Prices Surge Amid Elevated 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 West Texas Intermediate crude was at $93.11 a barrel, up 70 cents, or 0.76%. The rejection comes despite Iran's announcement last week of a peace proposal transmitted via Qatari mediators.
Trump told Axios in an interview that he expected US negotiators to engage in more talks this week. However, geopolitical risks remain elevated as the Houthis and Iran continue their attacks on Saudi Arabia, leaving regional supply flows vulnerable.
The rebound in oil prices follows a 7.9% loss for WTI last week due to concerns over potential US diesel export bans. The ban would tighten global supply outside of the US, with European prices reacting to reduced American supply.