Trump Rejects Iranian Truce Proposal, Oil Prices Surge

US President Donald Trump rejected Iran's offer of a seven-day truce on Sunday, sending oil prices soaring more than 3%. The Brent benchmark surged above $107 per barrel as concerns about a supply crisis mounted.

Tehran proposed a halt in hostilities at the UN General Assembly last week, which would have seen the Strait of Hormuz reopened and eased a global energy supply bottleneck. However, Trump told reporters he rejected their proposal, saying 'they overplayed their hand.'

The US president also expressed his expectation that negotiations will resume, stating that Iran wants to make a deal but not the one he is willing to accept.

Oil prices had initially fallen more than 2% on Friday following news of the offer, but rebounded at the start of this week. The US benchmark WTI traded up nearly 2%, above $94 per barrel.