Trump's Rejection of Iranian Proposal Sends Oil Prices Soaring

Oil prices surged over 4% on Monday after US President Donald Trump dismissed an Iranian proposal to restart peace talks and get critical oil shipments moving through the Strait of Hormuz.

The contract for November delivery for Brent crude spiked to $108.48 a barrel in mid-morning trade in London before easing slightly, trading just above $107 in the early afternoon, while American crude topped $96.16 a barrel before settling back to around $95 a barrel.

Trump said over the weekend that Tehran had put forward a proposal, but that he had turned it down saying it was 'unacceptable.'

Meyer Resources CEO Cornelia Meyer said the 'clear and present danger' of renewed fighting was being priced in by market participants. 'I think everybody hopes that this is not the case because, you know, we are living off borrowed barrels. A lot of countries are living off their inventories,' she told CNBC.