Oil Price Today: Oil prices climbed more than 1% in early Asian trading on Monday after US President Donald Trump rejected Iran's latest peace proposal, raising fresh uncertainty over the conflict and the reopening of the strategically important Strait of Hormuz.
At the latest check, Brent crude oil was trading 0.80% higher at $98.22 a barrel. Oil prices had fallen sharply last week as Washington and Tehran held discussions on the sidelines of the United Nations General Assembly in New York.
Trump rejected Tehran's conditional offer to reopen the Strait of Hormuz and resume nuclear negotiations with Washington. The Wall Street Journal reported on Saturday, citing unnamed US officials, that Trump had also told aides he expected US strikes on Iran to resume after the November midterm elections.
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Trump later confirmed that he had rejected Iran's latest proposal, saying, “They made a proposal but I rejected it.”
Iran Offers To Reopen Strait Of Hormuz
Iranian Foreign Minister Abbas Araghchi had offered on Friday to reopen the Strait of Hormuz within seven days and restart nuclear negotiations with Washington if the Trump administration met Tehran's conditions.
“If certain conditions are met, the Strait of Hormuz will be open at the end of seven days, and talks will be restarted,” Araghchi told reporters on the sidelines of the UN General Assembly in New York.
Iran's conditions include an end to what Tehran describes as US “acts of aggression”, the lifting of the naval blockade and economic warfare, and the release of Iranian assets, according to Iranian Foreign Ministry spokesman Esmaeil Baghaei.
Oil Prices Fell Sharply Last Week
The latest rise in crude prices comes after a steep weekly decline. West Texas Intermediate crude fell 2.3% to settle at $92.41 a barrel, while Brent crude, the international benchmark, declined 2.1% to settle at $104.32 a barrel.
For the week, US crude fell 7.9%, while Brent was flat.
Oil prices had come under pressure as Tehran and Washington held discussions over the possibility of a deal. Trump had earlier said he expected the conflict, which began with US and Israeli airstrikes on Iran on Feb. 28, to conclude soon after the midterm elections.
Strait Of Hormuz, Iran Conflict In Focus
The Strait of Hormuz remains a key factor for oil markets as investors assess the potential impact of renewed hostilities on crude supplies and shipping.
Separately, Yemen's Saudi-led coalition said on Saturday that it had intercepted projectiles launched by Iran-backed Houthi rebels.
Araghchi said Iran would restart talks aimed at reaching a final agreement if the US implements the conditions outlined in the June memorandum of understanding. He also said Tehran was awaiting a response from Washington.
“I think it would be much better if it is done before the midterm election, but it depends on the US administration to decide,” Araghchi said. “We are not in a hurry.”
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