Oil gains over 2% as US-Iran peace talks stall
USO•Brent rose 2.49% to $106.92 a barrel and U.S. WTI gained 2.25% to $94.49 after Donald Trump rejected Iran’s peace proposal. Middle East crude exports rebounded to 12.8 million barrels per day in September, preliminary data showed.
1. Oil prices rise
Brent crude rebounded more than 2% on Monday after Trump rejected Iran’s proposal to resolve the conflict and reopen the Strait of Hormuz. At 0803 GMT, Brent futures were up $2.60 at $106.92 a barrel, while WTI rose $2.08 to $94.49.
2. Talks and supply
Iran said last week that it had sent its proposal to the United States through Qatari mediators. Trump said he expected U.S. negotiators to hold more talks this week. Capital Economics commodities economist Hamad Hussain said increased flows through the Strait of Hormuz were easing some upward pressure on prices, while the oil market remained in deficit.
3. Exports rebound
Middle East crude exports reached 12.8 million barrels per day in September, the highest since the war began in February, preliminary Kpler data showed. Shipments through the Strait of Hormuz were set to reach about 7.4 million barrels per day this month as Saudi Arabia and the United Arab Emirates boosted exports.
