Brent crude rises 2.49% after Iran talks setback
- Brent crude oil prices rose more than 2% after U.S. President Donald Trump rejected an Iranian peace proposal related to the Strait of Hormuz.
- Brent futures increased $2.60 to $106.92 per barrel, while U.S. West Texas Intermediate crude rose $2.08 to $94.49 per barrel.
- Market analysts said supply concerns remain as geopolitical developments continue to affect oil flows and energy markets.
Brent crude oil prices rose 2.49% on Monday after U.S. President Donald Trump rejected a peace proposal from Iran aimed at resolving their conflict and reopening the Strait of Hormuz.
Brent futures increased $2.60 to $106.92 per barrel at 0803 GMT, while U.S. West Texas Intermediate crude rose $2.08, or 2.25%, to $94.49 per barrel as markets responded to geopolitical developments.
“Oil prices appeared to have jumped on the back of President Trump rejecting Iran's peace proposal,” said Hamad Hussain, Senior Climate and Commodities Economist at Capital Economics.
The price movement followed Iran’s proposal at the United Nations General Assembly and continued uncertainty around oil transportation routes, while preliminary Kpler data showed crude exports from key Middle East producers reached 12.8 million barrels per day in September.
Oil markets have remained focused on Middle East supply risks, including developments involving the Strait of Hormuz, a major route for global energy shipments.
Analysts said additional factors, including potential U.S. diesel export restrictions and global fuel supply conditions, could affect crude and refined product prices in coming weeks.
