Oil jumps over 3% after US rejects Iran truce proposal

Oil prices rose more than 3% on Monday, September 28, in Asian trading after US President Donald Trump rejected an Iranian proposal for a seven-day truce in the Middle East conflict.

Iran had submitted a plan to the UN to pause hostilities and reopen the Strait of Hormuz, a key route for global oil shipping. Donald Trump rejected the offer, stating that Iranian officials wanted a deal, but not the agreement he wanted to make. Crude prices had previously pulled back following Iran's proposal before climbing again after the rejection.

Brent crude, the international benchmark, advanced 3.1% to $107.51 per barrel. West Texas Intermediate (WTI), the US benchmark, rose 2.1% to $94.32 per barrel.

The Strait of Hormuz is a strategic route for Gulf oil and has been blocked by Iran since the outbreak of conflict in the Middle East in late February. The supply disruption was compounded by a blockade of the Bab el-Mandeb Strait by the Houthis, an Iran-backed group in Yemen, which halted crude shipments from Saudi Arabia.