Trump Rejects Iran's Proposal, Sending Crude Prices Soaring
US President Donald Trump's rejection of Iran's proposal to cease hostilities and reopen the Strait of Hormuz has sent crude oil prices soaring. The West Texas Intermediate (WTI) Oil benchmark is trading at $94.60, up nearly 3.5% on the day so far. This comes after reports that oil traffic through the strategic waterway increased to 12.8 million barrels per day in September, but remains below pre-war levels.
Tehran claims complete control of Hormuz and has vowed to take action against any country attempting to cross the strait. Meanwhile, analysts at Deutsche Bank highlight that tensions remain elevated after Iran reiterated its conditions for reopening the strait, including sanctions relief, access to frozen assets, and an end to US blockade measures.
The rejection of the seven-day ceasefire proposal has put oil markets on high alert, with prices climbing in response to increased uncertainty. The decision is seen as a setback for efforts to ease tensions in the Middle East, where the conflict between the US and Iran has been ongoing since February 28.