Oil heads higher as US-Iran peace talks in stalemate
Teheran insists on a diplomatic solution
Oil prices surged more than 1 percent on Monday (Sep 28) following US President Donald Trump's refusal of Iran's peace proposal to reopen the Strait of Hormuz and resolve their conflict. Brent crude futures jumped $1.32, or 1.27 percent, to $105.64 a barrel by 0036 GMT, while US West Texas Intermediate crude increased by 70 cents, or 0.76 percent, to $93.11 a barrel.
Iran's peace plan was announced at the UN General Assembly in New York and sent to the United States via Qatari mediators. Trump stated on Saturday he rejected the proposal but hinted in a phone interview on Sunday that US negotiators would have further discussions. The geopolitical risks remain heightened as both Iran and the Houthis continue their attacks on Saudi Arabia, putting regional supply flows at risk.
ANZ analysts highlighted that refined oil products are a concern due to record US diesel prices fueling inflation and prompting debate over potential export curbs. Crude oil exports from major Middle East producers rose in September to 12.8 million barrels per day, the highest since the war began in February, as Saudi Arabia and the UAE increased exports.
The uptick occurred after a recovery in shipments through the Strait of Hormuz, which was projected to reach around 7.4 million bpd this month. The increase followed Saudi Arabia redirecting exports from the Red Sea port of Yanbu to its eastern Ras Tanura port due to pipeline damage from attacks.
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- Oil heads higher as US-Iran peace talks in stalemate channelnewsasia.com
