Trump Rejects Iran Proposal to Reopen Strait of Hormuz

Oil prices rose on September 28, 2026, after Donald Trump rejected a seven-day peace proposal from Iran intended to resolve their conflict and reopen the Strait of Hormuz. The proposal had been transmitted via Qatari mediators during the United Nations General Assembly in New York. While Trump claimed a record volume of oil passed through the strait on Saturday night, he rejected the deal, though he indicated that U.S. negotiators would engage in further talks during the week.

Market volatility increased as Brent crude rose to approximately $105.95 a barrel and West Texas Intermediate reached $93.42. Analysts from OCBC Group Research attributed the price surge to geopolitical risks, shrinking inventories, and stricter U.S. sanctions on Iran. The instability was compounded by security alerts at Saudi Aramco facilities in Abha and Jazan, as a Saudi-led coalition intercepted Houthi drones and missiles targeting Riyadh and Khamis Mushait.

Despite the tensions, Middle East crude oil exports reached 12.8 million barrels per day in September, the highest level since February, driven by increased shipments from Saudi Arabia and the United Arab Emirates. The resulting inflation risks led to a slip in gold prices, although central bank purchasing continues to provide a price floor for the metal.