Oil prices rise after Trump rejects Iranian peace proposal

Market reaction to rejection

Brent crude futures rose above $106 a barrel while US West Texas Intermediate climbed by more than 70 cents. Prices jumped after the president confirmed he turned down Tehran's latest offer to reopen the Strait of Hormuz. Analysts noted that geopolitical risks remain elevated as regional supply flows stay vulnerable.

Details of the proposal

Iranian Foreign Minister Abbas Araghchi offered a seven-day truce and a restart of nuclear negotiations if Washington met specific conditions. Those conditions include ending US acts of aggression, lifting the naval blockade, and releasing Iranian assets. Trump stated he expected negotiators to engage in further talks despite rejecting the current plan.

Regional security concerns

The Saudi-led coalition intercepted ballistic missiles and drones launched by Houthi rebels towards Yemen early on Saturday. ANZ analysts warned that continued attacks by Houthis and Iran leave regional supply flows exposed to disruption. US diesel prices remain at record levels, prompting debate over potential export restrictions.