Oil prices surged over 3% following President Donald Trump’s rejection of an Iranian peace proposal intended to ease tensions and potentially reopen the critical Strait of Hormuz. Brent crude futures rose by $3.98, or 3.82%, reaching $108.30 per barrel, while U.S. West Texas Intermediate (WTI) increased by $3.52, or 3.81%, to $95.93 per barrel.
The price hike comes amid heightened uncertainty regarding U.S.-Iran relations. Although President Trump dismissed the proposal, he hinted at the possibility of further discussions with Tehran later this week, keeping diplomatic channels open despite the lack of an immediate breakthrough. Iran’s proposal was initially presented at the UN General Assembly and communicated to the U.S. through Qatari intermediaries.
Concerns over potential disruptions in oil supplies and shipping through the Strait of Hormuz have intensified due to the ongoing uncertainty. The region’s tensions remain high, highlighted by Saudi Arabia’s coalition intercepting ballistic missiles and drones launched by the Iran-backed Houthis toward Saudi territory.
Despite these tensions, crude exports from major Middle Eastern producers saw an increase in September, amounting to approximately 12.8 million barrels per day. Shipments through the Strait of Hormuz have also resumed, alleviating some worries about supply disruptions.
Market observers are closely monitoring developments in U.S.-Iran negotiations and the security of key oil shipping routes, as these factors could significantly influence crude prices in the coming days.