Oil prices rose by more than 1 per cent on Monday, September 28, 2026, after United States President Donald Trump rejected an Iranian proposal aimed at ending the conflict and reopening the Strait of Hormuz, keeping concerns over Middle East supply disruptions elevated.
Brent crude futures gained $1.32, or 1.27 per cent, to $105.64 a barrel by 0036 GMT, while US West Texas Intermediate crude rose 70 cents, or 0.76 per cent, to $93.11 a barrel.
Iran had presented a peace proposal at the United Nations General Assembly in New York last week, saying the plan was conveyed to the United States through Qatari mediators.
Trump said on Saturday that he had rejected the proposal. However, in a telephone interview with Axios on Sunday, he indicated that US negotiators were expected to hold further discussions with Iranian representatives this week.
Analysts at ANZ said geopolitical risks remained elevated, particularly following continued attacks by Iran and Yemen’s Houthi movement on Saudi Arabia.
“Geopolitical risks remain elevated, as the Houthis and Iran continued their attacks on Saudi Arabia, leaving regional supply flows vulnerable,” the analysts said in a note.
The Saudi-led coalition in Yemen said early Saturday that it had intercepted two ballistic missiles and two drones launched by the Iran-backed Houthis towards Saudi territory.
Concerns over the security of the Strait of Hormuz have remained a major factor in oil markets because the strategic waterway is a key route for global energy shipments.
Brent crude gained 0.4 per cent last week, while US WTI fell 7.9 per cent amid concerns that Washington could restrict diesel exports in an attempt to ease record domestic prices.
ANZ analysts said refined petroleum products remained a major pressure point, with elevated US diesel prices adding to inflation concerns and fuelling renewed debate over possible export restrictions.
“Refined oil products remain a pressure point, with record US diesel prices intensifying inflation risks and prompting renewed debate over potential export curbs,” the analysts said.
