Oil Rises as US Rejects Iran Proposal

Crude oil climbed above $93 per barrel on Monday, recovering some of the previous session’s losses after President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, raising concerns that the restoration of oil flows through the critical waterway could face further delays. Trump also said Tehran had overplayed its hand and expects negotiations to resume this week. Meanwhile, Iran said it is waiting for a definitive US response to its seven-day proposal to reopen the strait and other demands, adding that it will not ease its conditions after Trump rejected Tehran’s latest plan. Elsewhere in the Middle East, tensions remain high as Saudi Arabia intercepted Houthi drones heading toward Riyadh, along with a missile targeting Khamis Mushait in the south. Alerts were also issued in Abha and Jazan, where Aramco operates energy facilities. In the US, Trump is considering a ban on diesel exports as part of efforts to address elevated fuel prices.

Crude oil eased to around $92 a barrel on Friday after Iran called on the US to return to an interim peace deal that failed to end the war over the summer. A sequenced agreement would resemble the memorandum of understanding reached by the US and Iran in mid-June, which led to a fragile ceasefire that collapsed weeks later. Iran’s foreign minister proposed reopening the Strait of Hormuz and resuming nuclear talks with the US within seven days if the Trump administration accepts its conditions, including lifting the naval blockade, unfreezing Iranian assets, and ending the war “on all fronts.” Oil flows through Hormuz reached 33.7 million barrels this week, putting exports roughly on track with the previous week’s levels. Oil markets have remained volatile this week amid mixed signals over peace prospects, signs of recovering Middle East energy flows, and speculation that the US could restrict diesel exports. Despite recent gains, the US oil benchmark is down around 7.4% on the week.

Crude oil eased below $94 a barrel on Friday as US and Iranian negotiators explored a phased agreement to reopen the Strait of Hormuz. The proposed arrangement would reportedly involve Tehran restoring access through the strait while Washington lifts its blockade of Iranian ports. However, previous negotiations have repeatedly appeared close to a breakthrough before collapsing. A White House official said President Donald Trump remained open to discussions with Iran but argued that the US was under no pressure to negotiate given its sanctions campaign and blockade. Oil markets have remained volatile throughout the week, responding to mixed signals over prospects for peace, signs of recovering Middle East energy flows and speculation that Washington could restrict diesel exports. Despite recent gains, the US oil benchmark is down by around 2% this week, reflecting continued uncertainty over the potential reopening of the key shipping route and the broader supply outlook.