Global oil prices experienced a significant surge on Monday, with Brent crude futures soaring past the $107 mark. This uptick in oil prices occurred after U.S. President Donald Trump reportedly rejected a peace proposal from Iran, which included terms aimed at reopening the vital Strait of Hormuz.
According to a report by The Wall Street Journal, Trump informed his aides of his expectation that U.S. military strikes against Iran would resume following the U.S. midterm elections in November. This stance was later confirmed by President Trump himself to reporters, stating, "They made a proposal but I rejected it."
The Iranian proposal, presented by Foreign Minister Abbas Araghchi on Friday on the sidelines of the United Nations General Assembly, offered to reopen the Strait of Hormuz and resume nuclear negotiations with Washington within a seven-day timeframe, contingent on the Trump administration meeting Tehran's conditions. These conditions, as outlined by Iranian foreign ministry spokesman Esmaeil Baghaei, included an end to what Iran termed U.S. "acts of aggression," the lifting of a naval blockade, and the cessation of economic warfare, alongside the release of Iranian assets.
Earlier in September, President Trump had indicated an expectation that the conflict, which began with U.S. and Israeli airstrikes on Iran on February 28, 2026, would conclude shortly after the midterm elections, potentially leading to a subsequent decline in oil prices.
In a separate development, Yemen's Saudi-led coalition announced on Saturday that it had intercepted projectiles launched by Iran-backed Houthi rebels, adding to the regional tensions.
The geopolitical developments have directly impacted oil markets. U.S. crude futures for November delivery saw a 1.87% increase, reaching $94.14 a barrel. Simultaneously, the international benchmark Brent crude climbed 2.89% to trade at $107.34 a barrel as of 2:23 a.m. ET.
