Oil Prices Rebound as Trump Rejects Iran Peace Proposal

Oil prices moved higher on Monday after US President Donald Trump rejected a peace proposal put forward by Iran, increasing uncertainty around diplomatic efforts to resolve the conflict and keeping concerns over Middle Eastern oil supplies elevated.

Iran had submitted the proposal through Qatari mediators during the UN General Assembly. Trump rejected the plan but indicated that US representatives could continue discussions with Tehran later this week.

At the time of writing, Brent crude futures had risen $2.59/bbl, or 2.48%, to $106.91/bbl. US WTI NYMEX crude was up $1.54/bbl, or 1.67%, at $93.95/bbl.

The absence of a clear diplomatic breakthrough, combined with continued attacks by Iran and Iran-backed Houthis against Saudi Arabia, renewed concerns about possible disruptions to regional oil supplies.

The Saudi-led coalition said it had intercepted ballistic missiles and drones launched by the Houthis toward Saudi territory. Further escalation could raise risks to crude production, transportation and exports across the region.

However, recovering crude flows from major Middle Eastern producers could limit the strength of the price rebound.

Regional crude exports reached 12.8 million bpd in September, the highest level since the conflict began in February, supported by stronger shipments from Saudi Arabia and the UAE.

Crude volumes moving through the Strait of Hormuz were also expected to reach around 7.4 million bpd this month, indicating that some of the earlier supply disruptions have eased.

Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.