Oil Jumps 4% as Trump Rejects Iran's Strait of Hormuz Reopening Proposal
Brent crude prices increased by 4% to reach $108.48 per barrel, while U.S. West Texas Intermediate futures also rose by 4%, hitting $96.16. This surge followed President Donald Trump's dismissal of Tehran's proposal to reopen the Strait of Hormuz. On Saturday, Trump remarked, "They made a proposal but I rejected it," asserting that Iran was "dying" financially and had "outsmarted themselves." According to The Wall Street Journal, Trump anticipates renewed strikes on Iran after the November midterms. Iranian Foreign Minister Abbas Araghchi suggested that reopening the strait and resuming nuclear discussions could occur if the U.S. halted military actions and sanctions, indicating Tehran was awaiting a reply through Qatar. MarineTraffic noted a decline in shipping, with only 132 passages last week.
Key facts
- Brent crude rose 4% to $108.48 a barrel at 6:35 a.m. ET Monday; U.S. West Texas Intermediate gained 4% to $96.16
- Trump rejected Iran's proposal to reopen the Strait of Hormuz, telling reporters Saturday, "They made a proposal but I rejected it"
- Iranian Foreign Minister Abbas Araghchi unveiled the plan Friday at the United Nations General Assembly in New York
- The proposal would reopen the strait and restart nuclear talks within seven days if the U.S. ended strikes, lifted the naval blockade and sanctions, and released Iranian assets
- The Wall Street Journal reported Trump told aides he expects U.S. strikes on Iran to resume after November's midterm elections
- A U.S. official said close to 40 million barrels of oil moved through the strait in the preceding 48 hours
- Before U.S. and Israeli strikes on Feb. 28, roughly one-fifth of global oil supplies flowed through the strait daily, per Al Jazeera
- MarineTraffic logged 132 ship passages September 21–27, up from 116 the prior week but below the roughly 130 daily crossings typical before the war
Entities
Artists
- Donald Trump
- Abbas Araghchi
- Cornelia Meyer
Institutions
- CNBC
- The Wall Street Journal
- NBC News
- United Nations General Assembly
- Al Jazeera
- MarineTraffic
- Meyer Resources
- Tasnim news agency
Locations
- Strait of Hormuz
- Iran
- United States
- Israel
- New York
- Qatar
- Washington
- Persian Gulf
- Asia
- China
- Japan
- South Korea
Sources
- Quartz —
- Quartz —
- Quartz —
- SCMP Culture —