Oil prices rise on Monday after US President Donald Trump rejected Iran’s latest proposal to end the conflict and reopen the Strait of Hormuz.
Brent crude rose 2.8% to $107.26 per barrel in early trading, while US West Texas Intermediate (WTI) also gained 1.8% to $94.07 per barrel as concerns over continued disruption to global oil supplies instensified.
The rise in oil prices was driven by fading expectations of a near-term ceasefire in the region following reports they US President Donald Trump had rejected Iran’s peace proposal.
Iran’s proposal included a seven-day truce and the reopening of the strategic waterway, which is a major route for global oil shipments.
Tehran reportedly offered to reopen the Strait Hormuz and resume nuclear talks within a week in return for Washington lifting its naval blockade and sanctions on Iranian oil sales and restoring a regional ceasefire.
Trump rejected the proposal Saturday, dampening prospects for a near-term resolution to the conflict and keeping uncertainty over oil flows through the Strait of Hormuz in focus.
Trump’s rejection has renewed uncertainty over the conflict and the future of oil flows through the Strait. Meanwhile, markets are focused on October 4 OPEC -Group meeting between Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman.
At their September 6 meeting, the countries agreed to keep their October production targets unchanged from September levels.
-9News Nigeria.
