Oil Prices Increase Following Trump's Rejection of Iran's Proposal

Brent crude oil prices increased by more than 3 percent, surpassing $107 per barrel, after United States President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz within seven days. On Monday, Brent crude, the international benchmark, approached $108 a barrel during trading in Asia. After a slight decline in the afternoon, Brent futures for November were trading at $107.35 a barrel shortly before 08:00 GMT. Major stock markets in the Asia Pacific experienced mixed results following a 0.5 percent gain for the benchmark S&P 500 on Wall Street the previous week. Japan's Nikkei 225 index fell by 0.73 percent, while South Korea's Kospi index decreased by 2.70 percent. In contrast, Hong Kong's Hang Seng Index rose by 0.54 percent, and Australia's S&P/ASX 200 edged up by 0.17 percent. The recent market fluctuations occurred after Trump stated on Saturday that Tehran's latest proposal for resolving the US-Israel conflict regarding Iran was unacceptable. The proposal, announced by Iran at the United Nations General Assembly on Friday, included the US releasing frozen Iranian funds, lifting sanctions, and ending its naval blockade on Iranian ports in exchange for Iran reopening the strait and returning to negotiations on its nuclear program within a week. Prior to the US and Israel launching strikes on Iran in late February, approximately one-fifth of global oil supplies passed through the Strait of Hormuz, which connects the Gulf to the Gulf of Oman and the Arabian Sea. Since the onset of the conflict, commercial shipping in the waterway has significantly declined due to numerous attacks on vessels in the Gulf, primarily attributed to Iran or allied groups. According to maritime intelligence platform MarineTraffic, vessels made 132 transits of the strait from September 21 to 27, an increase from 116 the previous week. Before the conflict began, the waterway typically saw around 130 crossings each day.