Oil prices surged Monday after U.S. President Donald Trump rejected a proposal from Iran that aimed to reopen the Strait of Hormuz and end the ongoing conflict. The rejection, confirmed by Trump himself, has heightened regional tensions.
Trump’s decision follows reports that he expects U.S. strikes on Iran to resume post-midterm elections, impacting global oil markets significantly with both U.S. crude and Brent futures seeing notable gains.
Oil prices experienced a significant climb in Asian trading on Monday, driven by U.S. President Donald Trump's rejection of a peace proposal from Iran. The proposal aimed to resolve the ongoing Middle East conflict and, crucially, reopen the vital Strait of Hormuz.
Futures for U.S. crude oil, specifically for November delivery, saw a rise of 1.87%, reaching $94.14 a barrel as of early trading. Simultaneously, the international benchmark Brent crude futures increased by 2.89%, trading at $107.34 a barrel.
Fuel tankers carrying Iraqi oil arrive at the coastal storage facilities of the Baniyas Oil Terminal in Tartus province, Syria, on September 13, 2026. (Hasan Belal | Anadolu | Getty Images)
The catalyst for this market movement was a report from The Wall Street Journal on Saturday, citing anonymous U.S. officials. The report indicated that Trump had turned down Iran's conditional offer to reopen the Strait of Hormuz. Furthermore, Trump reportedly informed his aides that he anticipates a resumption of U.S. strikes against Iran following the November midterm elections.
Confirming the rejection, Trump stated to reporters, "They made a proposal but I rejected it."
Adding to the regional tensions, Yemen's Saudi-led coalition announced on Saturday that it had successfully intercepted projectiles launched by Iran-backed Houthi rebels.
Earlier, on Friday, Iranian Foreign Minister Abbas Araghchi had presented an offer at the United Nations General Assembly in New York. He proposed reopening the Strait of Hormuz and resuming nuclear negotiations with Washington within a seven-day timeframe, contingent upon the Trump administration meeting Tehran's conditions.
Araghchi specified that these conditions included an end to what Iran termed U.S. "acts of aggression," the lifting of the naval blockade, the cessation of economic warfare, and the release of Iranian assets. Iranian foreign ministry spokesman Esmaeil Baghaei elaborated on these demands.
This development contrasts with earlier statements from Trump this month, who had expressed expectations that the conflict, initiated by U.S. and Israeli airstrikes on Iran on February 28, would conclude shortly after the midterm elections, potentially leading to a decrease in oil prices.
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