Oil Prices Climb Above $105 as Trump Turns Down Iran’s Peace Offer
Brent crude futures rose to $105.64 per barrel after President Trump rejected an Iranian peace proposal routed through Qatari mediators. The diplomatic setback added to supply concerns even as Middle Eastern crude exports reached a September high. Continued attacks on Saudi infrastructure kept risk premiums elevated in energy markets.
Brent's move to $105.64 came alongside WTI at $93.11. The rejected proposal had been sent through Qatar during the UN General Assembly; Trump said talks may continue later in the week. Attacks attributed to Houthi forces and Iran continued to target Saudi energy infrastructure, though the Saudi-led coalition intercepted missiles and drones.
September Middle Eastern crude exports hit 12.8 million barrels per day, the highest since the war started, with about 7.4 million bpd passing through Hormuz. Saudi Arabia shifted some flows from Red Sea routes to Ras Tanura after damage to its East-West pipeline. U.S. diesel export limits are also being debated amid record domestic prices.
Higher crude prices could feed into transport, heating, food costs, affecting households and small businesses. Import-dependent economies may face inflation pressure. Oil producers and refiners might see revenue gains, while airlines, logistics, and manufacturers may absorb higher fuel bills. If diesel export restrictions emerge, U.S. farmers, truckers, and overseas buyers could face tighter supply and price swings. Diplomatic uncertainty may keep volatility elevated, making planning harder for firms and consumers.