Trump Rejects Iran Proposal: Crude Oil Prices Skyrocket Amid Strait of Hormuz Tensions

The US-Iran conflict is escalating, and it's affecting crude oil prices. President Donald Trump rejected Iran's proposal to reopen the Strait of Hormuz, making a disruption more likely. This tightens global supply, pushing WTI crude back toward its prior month's highs as risk premium rises.

Iran has intensified attacks on shipping in the region, and the IRGC may seek to boost oil prices before the November election by launching attacks against key US interests. This scenario is considered an 'October Surprise' aimed at helping Democrats win a large margin.

Brent crude has dropped below $101.75 support but remains above its 100-day EMA, signaling that bulls are in control. The most likely scenario is a rebound to this month's high of $109.96, potentially leading to further gains toward the year-to-date high of $119.