Oil prices rise as US-Iran peace talks hit stalemate

Oil prices rebounded on Monday after US President Donald Trump rejected a peace deal from Iran aimed at ending their conflict and reopening the Strait of Hormuz, keeping tensions in the Middle East elevated, Reuters reports.

Brent crude futures rose $1.32, or 1.27 percent, to $105.64 a barrel, while US West Texas Intermediate crude climbed 70 cents to $93.11 a barrel. Iran announced the proposal last week at the UN General Assembly, saying it was transmitted to Washington through Qatari mediators. Trump said on Saturday he had rejected the plan, but told Axios on Sunday that he expected US negotiators to hold more talks this week.

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Oil prices rebounded on Monday after US President Donald Trump rejected a peace deal from Iran aimed at ending their conflict and reopening the Strait of Hormuz, keeping tensions in the Middle East elevated, Reuters reports.

Brent crude futures rose $1.32, or 1.27 percent, to $105.64 a barrel, while US West Texas Intermediate crude climbed 70 cents to $93.11 a barrel.

Iran announced the proposal last week at the UN General Assembly, saying it was transmitted to Washington through Qatari mediators.

Trump said on Saturday he had rejected the plan, but told Axios on Sunday that he expected US negotiators to hold more talks this week.

Analysts at ANZ said geopolitical risks remain elevated as the Houthis and Iran continue attacks on Saudi Arabia, leaving regional supply flows vulnerable.

Yemen’s Saudi-led coalition said it intercepted two ballistic missiles and two drones launched by the Houthis towards the kingdom on Saturday.

The analysts also flagged refined products as a pressure point, noting record US diesel prices have revived debate over possible export curbs, which would tighten supply outside the United States.

Preliminary Kpler data showed crude exports from key Middle East producers rebounded in September to 12.8 million barrels per day, the highest since the war began in February, as Saudi Arabia and the United Arab Emirates boosted shipments.

Flows through the Strait of Hormuz were set to reach about 7.4 million barrels per day this month, though the stalemate in talks leaves the market exposed to fresh supply shocks.