Oil prices jumped more than 3% on Monday, September 28, 2026, after US President Donald Trump rejected an Iranian proposal to end the conflict and reopen the Strait of Hormuz, restoring a geopolitical risk premium to the market as diplomatic efforts between Washington and Tehran continued.
Brent tops $107
Brent futures rose $3.43, or 3.29%, to $107.75 a barrel by 5:40 a.m. GMT, while US West Texas Intermediate crude rose $2.14, or 2.32%, to $94.55 a barrel.
In early Asian trading, Brent had risen $1.82, or 1.74%, to $106.14 a barrel, while West Texas Intermediate climbed $1.14, or 1.23%, to $93.55 a barrel, before gains widened later.
Proposal to reopen the Strait of Hormuz
Iran announced the proposal during the United Nations General Assembly meetings in New York. Iranian Foreign Minister Abbas Araqchi said on September 25 that Tehran had conveyed, through Qatari mediators, a seven-day plan that would allow normal shipping traffic through the Strait of Hormuz to resume once the necessary conditions were met and the United States accepted the plan.
Trump said over the weekend that he had rejected the proposal, but indicated that he was open to continuing negotiations, expecting US negotiators to hold further talks with Iran during the week.
They want to make a deal, but it’s not the deal I want to make.
Middle Eastern exports recover
Preliminary data from Kpler showed that crude oil exports from major Middle Eastern producers recovered in September to 12.8 million barrels per day, the highest level since the war began in February, as Saudi Arabia and the United Arab Emirates increased their exports.
The recovery came as shipments through the Strait of Hormuz improved and are expected to reach about 7.4 million barrels per day in September, alongside Saudi Arabia redirecting part of its exports from the Red Sea port of Yanbu to Ras Tanura port in the east of the country.
