Eco
Oil prices saw a surge on Monday, driven by escalating tensions in the Middle East following US President Donald Trump's rejection of an Iranian peace proposal. The offer had aimed to resolve the dispute between the two nations and reopen the strategic Strait of Hormuz. By 04:05 GMT, Brent crude futures rose by $2.75, or 2.64%, reaching $107.07 per barrel. US West Texas Intermediate (WTI) crude also increased by $1.73, or 1.87%, to $94.14 per barrel. Iran had presented its peace proposal last week at the United Nations General Assembly in New York, stating it had been relayed to the Americans via Qatari mediators. While Trump announced his rejection of the plan on Saturday, he told Axios in a Sunday phone interview that he expects US negotiators to hold further talks this week. In related market fluctuations, Brent crude gained 0.4% last week. Conversely, WTI fell by 7.9% amid concerns that the United States might ban diesel exports to alleviate record prices, a move that could restrict US refined products. ANZ Bank analysts stated that "refined oil products continue to be a pressure point, as record diesel prices in the United States exacerbate inflation risks and spark renewed debate about potential export restrictions." They added that any restrictions on US diesel exports would shrink supply outside the United States, impacting European prices due to potential lower US supply. Meanwhile, initial data released on Monday by Kepler indicated a notable rebound in crude oil exports from major Middle Eastern producers in September. Exports reached 12.8 million barrels per day, marking the highest level since the war began in February, with Saudi Arabia and the UAE increasing their shipments. This recovery coincided with a rebound in shipments through the vital Strait of Hormuz, which was projected to reach approximately 7.4 million barrels per day this month, according to the data.
