Ammon News - Brent crude oil rebounded more ‌than 3% on Monday after US President Donald Trump rejected a peace deal from Iran to resolve their conflict and reopen the Strait of Hormuz, keeping tensions in the Middle East elevated.

Brent crude futures rose $3.43, or 3.29%, to $107.75 a barrel at 0540 GMT, ​while US West Texas Intermediate crude was at $94.55 a barrel, up $2.14, or 2.32%.

Iran announced a peace ​proposal last week at the UN General Assembly in New York, saying it ⁠had been transmitted to the Americans via Qatari mediators. Trump said on Saturday he rejected the plan, ​but told Axios in a phone interview on Sunday that he expected US negotiators to engage in more ​talks this week.

"The rejection has reduced hopes of an immediate breakthrough, although diplomatic efforts have not ended," said Sugandha Sachdeva, the founder of SS WealthStreet, a New Delhi-based research firm.

"For Brent futures, $120 a barrel remains the crucial resistance. As long ​as prices fail to sustain above it, a pullback remains possible, particularly if shipping improves or talks ​make progress."

Brent edged up 0.4% last week but WTI lost 7.9% on concerns that the US may ban diesel exports to ease record prices which could curb US refining output.

"Refined oil products remain a pressure point, with record US diesel prices intensifying inflation risks and prompting renewed debate over potential export curbs," ANZ ​analysts said in a note.

Any ​restriction on US diesel ⁠exports would tighten supply outside the US, with European prices reacting to the prospect of reduced American supply, they added.

Meanwhile, crude oil exports from key Middle East ​producers rebounded in September to 12.8 million barrels per day, the highest since ​the war ⁠started in February, preliminary data from Kpler showed on Monday, as Saudi Arabia and the United Arab Emirates boosted exports.

The rebound came following a recovery in shipments via the Strait of Hormuz, which were set to hit ⁠about 7.4 ​million bpd this month, the data showed, as Saudi Arabia ​diverted exports from the Red Sea port of Yanbu to its eastern Ras Tanura port following attacks that damaged its East-West pipeline.


Reuters