29 September 2026 (Navroze Bureau) Oil prices surged on Monday after US President Donald Trump rejected Iran’s proposal for a seven-day truce, renewing concerns about prolonged conflict and disruptions to crude supplies.
International benchmark Brent crude briefly rose more than 4% and moved above $106 a barrel, while US West Texas Intermediate also gained. Prices later pared some of the early increase as markets awaited possible talks between Washington and Tehran.
Iran’s proposal included reopening the Strait of Hormuz within seven days and resuming nuclear negotiations. Tehran has linked the reopening to conditions including the lifting of US sanctions on Iranian oil, release of frozen assets and an end to the US naval blockade. Trump rejected the terms but indicated that negotiations could continue.
The Strait of Hormuz remains central to the oil market because it normally carries roughly one-fifth of global oil supplies. Reduced shipping through the waterway has already contributed to a significant supply squeeze and higher energy costs.
The latest price jump has also revived inflation concerns, with higher crude and diesel prices potentially increasing transportation and production costs worldwide. Financial markets reacted to the renewed uncertainty, with US stocks declining and Treasury yields rising.
Oil prices had fallen late last week after news of Iran’s proposal raised hopes of a diplomatic breakthrough. Monday’s rebound reflected renewed concern that the conflict could continue and that normal energy flows through the Strait of Hormuz may take longer to restore.