US-Iran Diplomatic Impasse Sends Oil Prices Soaring Again

Oil prices surged on Monday as uncertainty over US-Iran diplomacy renewed concerns about oil shipments through the Strait of Hormuz. Brent crude rose $2.59 to around $106.90 a barrel, while US West Texas Intermediate crude increased by 70 cents to $94.03.

The price increase follows US President Donald Trump's rejection of Iran's latest proposal aimed at ending the conflict and reopening the strategic waterway. Although Trump later stated that he expected US negotiators to hold further talks with Tehran this week, the market remains cautious about the future of oil shipments through the Strait of Hormuz.

The renewed diplomatic uncertainty has put a focus back on the Strait of Hormuz, which is crucial for global oil supplies. Preliminary Kpler data showed that crude exports from key Middle Eastern producers rose to 12.8 million barrels per day in September, the highest since the US-Israeli war with Iran began in February.