Trump's Rejection of Iran Peace Deal Sends Oil Prices Soaring

Oil prices surged on Monday as US President Donald Trump rejected a peace deal from Iran to resolve their conflict and reopen the Strait of Hormuz. Brent futures rose by 2.86% to $107.30 a barrel, while West Texas Intermediate crude increased by 3.04% to $95.22 a barrel.

Hamad Hussain, senior climate and commodities economist at Capital Economics, attributed the jump in oil prices to Trump's rejection of Iran's peace proposal.

The Strait of Hormuz is a critical waterway for global oil shipments, and its closure would significantly impact international energy supplies. While some flows through the strait have eased upward pressure on prices, Hussain noted that the oil market remains in deficit.

The rebound in crude oil exports from key Middle East producers in September has also contributed to the rise in oil prices. Saudi Arabia and the United Arab Emirates boosted their exports after a recovery in shipments via the Strait of Hormuz.