Brent surges above $105 after Trump rejects Iran’s peace proposal

Oil prices climbed by more than 1% on September 28 after US President Donald Trump dismissed an Iranian proposal aimed at ending the conflict and reopening the Strait of Hormuz, leaving geopolitical tensions in the Middle East elevated.

Brent crude futures gained $1.32, or 1.27%, to reach $105.64 a barrel, while West Texas Intermediate (WTI) rose 70 cents, or 0.76%, to $93.11, Reuters reports.

Iran unveiled its peace proposal at the UN General Assembly in New York last week, saying the initiative had been delivered to the United States through Qatari mediators. Trump confirmed on September 26 that he had rejected the proposal, although he told Axios in a phone interview the following day that US negotiators were expected to hold further discussions this week.

At the same time, crude exports from major Middle Eastern producers recovered in September, reaching 12.8 million barrels per day (bpd) — their highest level since the war began in February, according to preliminary data released by Kpler on September 28. The increase was driven by higher shipments from Saudi Arabia and the United Arab Emirates.

The rise in exports followed a recovery in flows through the Strait of Hormuz, with shipments expected to reach around 7.4 million bpd this month. According to the data, Saudi Arabia redirected some exports from the Red Sea port of Yanbu to the eastern port of Ras Tanura after attacks damaged the country’s East-West pipeline.

By Jeyhun Aghazada