Oil rebounds after Trump rejects Iran peace deal
Crude prices climbed after United States President Donald Trump rejected an Iranian peace proposal aimed at resolving their conflict and reopening the Strait of Hormuz. Brent crude futures rose US$1.32, or 1.27 per cent, to settle at US$105.64 a barrel. The rejection erased earlier market optimism driven by a potential diplomatic solution and expectations of reopened shipping lanes. Prices later extended gains alongside tightening fuel markets and stalled negotiations. Meanwhile, the broader financial markets saw stock futures slip and Treasury yields react to the ongoing geopolitical friction.
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- ✓ US President Donald Trump rejected a peace deal from Iran to resolve their conflict and reopen the Strait of Hormuz.
- ✓ Oil prices climbed about 2 percent on Monday following the rejected peace proposal.
- ✓ Brent crude futures rose US$1.32 to US$105.64 a barrel by early trading.
- ✓ Qatari mediators pledged to hold talks with the United States and Iran amid ongoing supply disruption worries.
What changed
US President Donald Trump rejected a peace deal offered by Iran to reopen the Strait of Hormuz, halting a brief decline in crude prices.
Live updates
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Oil Rebounds After Trump Rejects Iran Peace Deal
Crude prices climbed after United States President Donald Trump rejected an Iranian peace proposal aimed at resolving their conflict and reopening the Strait of Hormuz. Brent crude futures rose US$1.32, or 1.27 per cent, to settle at US$105.64 a barrel. The rejection erased earlier market optimism driven by a potential diplomatic solution and expectations of reopened shipping lanes. Prices later extended gains alongside tightening fuel markets and stalled negotiations. Meanwhile, the broader financial markets saw stock futures slip and Treasury yields react to the ongoing geopolitical friction.
Why it matters
Oil markets remain highly sensitive to disruptions in the Strait of Hormuz, a critical energy transit choke point. Diplomatic efforts involving Qatari mediators have intersected with direct threats from Washington, keeping supply anxieties elevated. The failure of the latest peace overture immediately reversed a sharp downward trend in crude prices that had been sparked by earlier hopes for a settlement.
What is confirmed
- US President Donald Trump rejected a peace deal from Iran to resolve their conflict and reopen the Strait of Hormuz.
- Oil prices climbed about 2 percent on Monday following the rejected peace proposal.
- Brent crude futures rose US$1.32 to US$105.64 a barrel by early trading.
- Qatari mediators pledged to hold talks with the United States and Iran amid ongoing supply disruption worries.
What to watch next
- Further developments in US-Iran diplomatic talks involving Qatari mediators
- Official updates regarding the operational status and security of the Strait of Hormuz
- Movement in US fuel inventories and refined product markets
confidence 100%Sources used for this update (15)
- cbsnews.com — Iran War Updates: U.S. and Iran hold first talks since June after Trump threatens regime with annihilation
- CNBC — Oil falls amid optimism over potential diplomatic solution to the Iran conflict
- Barchart.com — Crude Prices Fall Sharply in Hopes of a Deal to Reopen Hormuz
- Reuters — Oil rebounds after Trump rejects Iran peace deal
- Bloomberg.com — Oil Up, Stock Futures Slip as Iran Offer Rejected: Markets Wrap
- finance.yahoo.com — Oil prices rise 2% after Trump rejects Iran peace deal
- www.aol.com — Oil prices settle slightly higher on supply worries as Trump ...
- journalrecord.com — Oil prices rise 2% after Trump rejects Iran peace deal
- myinvestingnews.com — Trump Rejected Iran’s Hormuz Deal And Oil Is Rebounding. The Bigger Move Is In Treasuries, Where The 10-Year Just Hit A One-Year High.
- note.com — Market Outlook and Notable Stocks from GEX Perspective 2026-09-28
- note.com — Diesel is Scarier Than Crude Oil | The Real Bottleneck Moving Global Prices
- www.asiaone.com — Oil rebounds after Trump rejects Iran peace deal, Money News - AsiaOne
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