Oil price rises after Iranian proposal rejected
Markets react to fresh uncertainty over the Strait of Hormuz and talks between Washington and Tehran.
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The oil price rose by more than 1 per cent in early Asian trading on Monday after US President Donald Trump rejected an Iranian proposal. The proposal was intended to reopen the Strait of Hormuz and end the fighting in the Middle East.
According to Reuters, Brent crude rose 1.27 per cent in early trading to $105.64 a barrel. US West Texas Intermediate crude stood at $93.11, an increase of 0.76 per cent. These are market prices at a specific moment; futures prices and exchange rates may change again during the day.
According to Reuters, Iran had conveyed the proposal to the United States through mediators from Qatar. Tehran said the strategic strait could be reopened within seven days if conditions were met. Those conditions included the US blockade of Iranian ports, frozen Iranian assets and US oil sanctions.
Trump said on Saturday that he had rejected the proposal. The US president called the plan unacceptable, but according to Reuters later also indicated that US negotiators could speak to Iran again this week. The diplomatic situation is therefore not completely closed, but it remains unclear what agreements might be possible.
The Strait of Hormuz is important to international oil transport. A prolonged disruption could restrict or make more expensive supplies from the Persian Gulf. The oil price therefore responds not only to actual export figures, but also to expectations about blockades, insurance costs, shipping and the risk of further escalation.
There are also signals tempering the price rise. Reuters reported that oil exports from major producers in the Middle East provisionally reached 12.8 million barrels per day in September, the highest level since the start of the war. That figure is based on preliminary data from Kpler and does not mean that all transport problems have been resolved.
For consumers and businesses, a higher oil price usually feeds through with a delay into fuel, transport and some industrial products. The scale of the effect depends on refining margins, stocks, taxes and the duration of the disruption. It is therefore too early to predict a new petrol price or general wave of inflation based on this single day of trading.
One story, several perspectives
What is established
- Trump has rejected the Iranian proposal.
- Brent crude rose above $105 a barrel in early trading.
- Iran says diplomacy is needed to break the deadlock.
- The Strait of Hormuz remains part of the conflict.
Left
Arguments The economic damage caused by war and blockades ultimately falls on households and workers. Diplomacy and a swift end to the fighting should take priority over maximum pressure and geopolitical prestige projects.
Values Human security, international co-operation, affordability and limiting military escalation.
Consequences An agreement could reduce energy prices and uncertainty, but concessions without oversight could trigger abuse of power or new conflicts.
Centre
Arguments A lasting solution requires both diplomacy and oversight of shipping, sanctions and nuclear risks. Governments must protect energy supplies and consumers while retaining room for negotiations.
Values Stability, the international rule of law, security of supply and administrative caution.
Consequences A phased agreement could calm markets, but an unclear deal might merely shift the uncertainty temporarily.
Right
Arguments Iran must not be rewarded for applying pressure on a crucial shipping route. Only credible deterrence and strict conditions can prevent Tehran from using negotiations to buy time or ease economic pressure.
Values National security, order, deterrence and the protection of free trade.
Consequences A hard line could strengthen the negotiating position, but it also increases the risk of further disruption to oil supplies and higher prices.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The current price levels and diplomatic developments are based on Reuters reporting. Uncertainties over exports, escalation and consumer prices are explicitly identified as uncertain.
- confirmed Brent crude rose 1.27 per cent in early trading to $105.64 a barrel. — Reuters reported this figure at 0036 GMT. source
- confirmed Trump rejected an Iranian proposal to reopen the Strait of Hormuz. — Reuters described the rejection and the content of the proposal. source
- confirmed Iran conveyed the proposal through Qatari mediators. — This is stated in the Reuters report. source
- confirmed Oil exports from major producers reached a provisional 12.8 million barrels per day in September. — Reuters cited preliminary data from Kpler for this figure. source
Editor's note
The price movement and diplomatic developments are well documented. The consequences for Dutch fuel prices and inflation remain uncertain and are not presented as established facts.Sources
- Oil heads higher as US-Iran peace talks in stalemate — Reuters, via MarketScreener
- Iran insists on diplomatic solution after Trump rejects peace plan — Reuters, via Investing.com
- Trump says oil prices that spiked because of Iran war likely won't come down until after midterms — Associated Press