Trump Rejects Iran's Proposal, Oil Prices Soar
The price of Brent crude oil surged by more than 3% to $107.51 in afternoon Asian trade, following US President Donald Trump's rejection of Iran's proposal to reopen the Strait of Hormuz.
The offer, presented last week at the UN General Assembly, included a halt in hostilities and the reopening of the waterway, which is crucial for global energy supplies.
However, Trump stated that he 'rejects their proposal' and that negotiations would continue, but not on the terms Iran has set. He added that 'they overplayed their hand', implying that they had been too aggressive in their demands.
The rejection of the proposal led to a bounce back in oil prices, which had fallen by more than 2% on Friday due to news of the offer. The rise in prices is likely to put upward pressure on inflation and has weighed on stock markets across Asia, with several countries experiencing losses.