Oil Prices Rise as Trump Rejects Iran Peace Proposal

Oil prices rose more than 1% on Monday after US President Donald Trump rejected an Iranian proposal linked to ending the conflict and reopening the Strait of Hormuz.

Brent crude futures gained $1.32, or 1.27%, to $105.64 a barrel by 0036 GMT. US West Texas Intermediate crude rose 70 cents, or 0.76%, to $93.11 a barrel.

US-Iran Talks Remain Uncertain

Iran presented a peace proposal during the UN General Assembly in New York last week.

Tehran said it sent the proposal to Washington through Qatari mediators.

Trump rejected the proposal on Saturday. However, he later told Axios that US negotiators could hold further talks with Iran this week.

The uncertainty has kept geopolitical risks high. ANZ analysts said attacks by Iran and the Houthis could leave regional oil supplies vulnerable.

PSX Falls 404 Points as US-Iran Tensions Weigh on Market

The Saudi-led coalition in Yemen also said it intercepted two ballistic missiles and two drones launched towards Saudi Arabia.

Diesel Supply Adds Pressure

Oil markets are also watching US diesel prices.

Brent crude gained 0.4% last week. Meanwhile, WTI fell 7.9%.

The decline came amid concerns that Washington could restrict diesel exports. Such a move could ease prices in the United States but reduce supplies in other markets.

ANZ analysts said refined oil products remain a key pressure point. They also warned that tighter US diesel exports could affect European fuel prices.

Middle East Oil Exports Recover

Crude exports from major Middle East producers recovered in September.

Preliminary Kpler data showed exports reaching 12.8 million barrels per day. That was the highest level since the war began in February.

Saudi Arabia and the United Arab Emirates increased their exports during the month.

Shipments through the Strait of Hormuz also recovered. Flows were expected to reach about 7.4 million barrels per day in September.

Saudi Arabia redirected some exports from Yanbu on the Red Sea to Ras Tanura on its eastern coast.

The shift followed attacks that damaged the country’s East-West oil pipeline.

The developments underline the importance of Hormuz to global energy supplies. Continued diplomatic uncertainty could therefore keep oil markets volatile.