Crude oil prices rose by more than 1% in international markets on Monday as tensions in the Middle East remained elevated after US President Donald Trump rejected an Iranian peace proposal.
According to Reuters, at 0036 GMT on Monday, Brent crude futures rose $1.32, or 1.27%, to $105.64 a barrel. US West Texas Intermediate (WTI) crude gained 70 cents, or 0.76%, to $93.11 a barrel.
Iran presented a peace proposal last week during the United Nations General Assembly in New York. Tehran said the proposal had been conveyed to Washington through Qatari mediators. The proposal included reopening the Strait of Hormuz within seven days and halting regional hostilities.
Trump said on Saturday that he had rejected the proposal. However, in a telephone interview with Axios on Sunday, he said US negotiators could hold further discussions with Iran this week.
Analysts at Australia and New Zealand Banking Group (ANZ) said geopolitical risks remain elevated as Iran-backed Houthis continue attacks against Saudi Arabia. The situation could put oil supplies from the Middle East at risk.
A Saudi-led coalition said on Saturday that it had intercepted two ballistic missiles and two drones launched by the Houthis toward Saudi Arabia.
Brent crude gained 0.4% last week. WTI, however, fell 7.9% amid concerns that the United States could impose restrictions on diesel exports as domestic diesel prices reached record levels.
ANZ analysts said restrictions on US diesel exports could reduce supplies outside the United States. Concerns about tighter US supplies are already affecting fuel prices in European markets.
Meanwhile, crude oil exports from major Middle Eastern producers increased in September. Preliminary data from analytics firm kpler showed that crude exports from key Middle Eastern producers could average 12.8 million barrels per day this month, driven by higher shipments from Saudi Arabia and the United Arab Emirates. That would be the highest level since the war began.
Oil shipments through the Strait of Hormuz have also increased. Kpler estimates that around 7.4 million barrels of oil per day could pass through the strait this month.
After damage to Saudi Arabia’s East-West pipeline caused by attacks, the kingdom reduced exports from the Red Sea port of Yanbu and increased shipments through Ras Tanura on the eastern coast. The changes have helped maintain regional oil flows, but geopolitical uncertainty continues to influence global energy markets.
