Oil prices rebounded more than 1% 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 $1.32, or 1.27%, to $105.64 a barrel by 0536 PKT, while US West Texas Intermediate crude was at $93.11 a barrel, up 70 cents, or 0.76%.
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.”Geopolitical risks remain elevated, as the Houthis and Iran continued their attacks on Saudi Arabia, leaving regional supply flows vulnerable,” ANZ analysts said in a note.
Yemen’s Saudi-led coalition said early on Saturday it had intercepted two ballistic missiles and two drones launched by the Houthis towards the kingdom.
