Trump Rejects Iran's Peace Proposal, Fueling Oil Price Surge
Oil prices rose on Monday as hopes for a near-term US-Iran ceasefire faded and uncertainty over oil flows through the Strait of Hormuz persisted.
US President Donald Trump rejected Iran's peace proposal over the weekend, citing unacceptable terms. The proposal included reopening the Strait of Hormuz and resuming nuclear talks within a week in return for Washington lifting its naval blockade and sanctions on Iranian oil sales and restoring a regional ceasefire.
The rejection dampened prospects for a near-term resolution to the conflict, keeping uncertainty over oil flows through the Strait of Hormuz in focus. Trump said he expects more talks with Iran in the coming days but emphasized that Tehran has yet to offer acceptable terms.
Oil prices were driven by fading expectations of a ceasefire and continued supply concerns. Brent crude futures for December delivery traded at $98.54 a barrel, up 1.1% from the previous close of $97.44, while US benchmark West Texas Intermediate (WTI) crude futures for November delivery rose 1.4% to $93.71 a barrel.