SINGAPORE (News Desk): Oil prices rebounded on Monday after US President Donald Trump rejected an Iranian proposal aimed at ending the conflict and reopening the strategically important Strait of Hormuz, keeping geopolitical concerns elevated in global energy markets.
Brent crude futures were last reported at $106.14 a barrel, up $1.82, or 1.74%, while US West Texas Intermediate crude stood at $93.55 a barrel, gaining $1.14, or 1.23%.
Meanwhile, crude exports from major Middle Eastern producers recovered in September to around 12.8 million barrels per day, the highest level since the US-Israeli conflict with Iran began in February, according to Kpler data cited by Reuters.
The recovery was supported by increased shipments from Saudi Arabia and the United Arab Emirates, along with an improvement in oil flows through the Strait of Hormuz.
Exports through the waterway were expected to reach approximately 7.4 million barrels per day this month. Saudi Arabia also diverted some crude shipments from the Red Sea port of Yanbu after attacks damaged its East-West pipeline.
Despite the recovery, exports from Saudi Arabia, the UAE, Iraq, Oman, Qatar, Kuwait and Iran remained around 6 million barrels per day below February’s 18.8 million barrels per day, according to Kpler.
Saudi Arabia, the region’s leading exporter, was expected to ship about 5.4 million barrels per day in September, compared with 2.446 million barrels per day in August.
Shipments from Saudi Arabia’s Ras Tanura port also rose sharply to around 3.6 million barrels per day in September from 929,000 barrels per day in August, although the figure remained below the 6.411 million barrels per day recorded in February.
Trump Expects Fresh Iran Talks
Trump said Sunday that negotiations with Iran could resume during the coming week, despite rejecting Tehran’s latest proposal.
Iran had presented a plan at the United Nations General Assembly calling for a seven-day truce, followed by the reopening of the Strait of Hormuz. Trump rejected the proposal but indicated that Washington remained open to further discussions.
Trump told Axios that Iran wanted an agreement but that its proposal did not meet his requirements. Reuters reported that indirect talks between Washington and Tehran could potentially resume as early as Monday.
Iranian Foreign Minister Abbas Araghchi, meanwhile, said Tehran’s conditions for reopening the Strait remained unchanged and stressed that diplomacy remained an option.
Iran has said that reopening the waterway depends on steps including an end to hostilities, easing the US blockade and sanctions, and measures concerning frozen Iranian assets and oil exports.
The Strait of Hormuz remains a crucial route for global energy supplies, making developments surrounding the waterway a major factor for international oil markets.
Iran’s Revolutionary Guards also said Sunday that they had seized a US submersible drone in the Strait, alleging that it was being used for surveillance purposes.
The latest developments have left diplomatic efforts at an uncertain stage, while oil markets continue to closely monitor the situation for signs of further disruption or improvement in crude supplies.
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