Iranian peace proposal falls through, oil prices surge immediately

Oil prices are rising at the start of the new week, reacting to US President Donald Trump’s rejection of Iran’s peace plan. The plan was intended to end the conflict and reopen the Strait of Hormuz. Tensions in the Middle East therefore remain elevated.

At around 7:50 CEST, the price of North Sea Brent crude was up three percent at 107.38 dollars per barrel. US light crude WTI was up 2.1 percent at the same time, trading at 94.32 dollars per barrel.

Last week, the price of Brent crude rose by 0.4 percent, while the price of WTI fell by 7.9 percent. This was due to concerns that the United States might ban diesel exports to ease record-high prices, potentially curbing production at US refineries.

Last week, Iran presented a peace proposal at the UN General Assembly in New York, which was delivered to the Americans through Qatari mediators. Trump said on Saturday that he had rejected the plan. On Sunday, however, he told Axios in a phone interview that he expected US negotiators to continue talks this week.