Oil rises as Trump rejects Iran’s Hormuz proposal
Brent crude neared US$108 a barrel in Asian trading after Washington rejected a proposal linking the strait’s reopening to US concessions and renewed nuclear talks.
Brent crude rose more than 3 per cent in Asian trading on Monday, nearing US$108 a barrel after US President Donald Trump rejected Iran’s proposal to reopen the Strait of Hormuz within seven days. Al Jazeera reported that November futures later eased to US$107.35 shortly before 08:00 GMT.
Iran announced the proposal at the United Nations General Assembly on Friday. It linked reopening the strait and returning to nuclear talks within a week to US steps including releasing frozen Iranian funds, lifting sanctions and ending its naval blockade of Iranian ports.
The proposal was part of efforts to end the war. Trump said on Saturday it was not acceptable; no agreement to reopen the waterway has been reached.
The strait is a key oil shipping route. Before the war began in late February, about one-fifth of global oil supplies passed through it. Commercial shipping has since fallen sharply amid attacks on vessels in the Gulf, Al Jazeera reported.
Citing maritime intelligence platform MarineTraffic, Al Jazeera reported 132 vessel transits between 21 and 27 September, up from 116 the previous week. Before the war, the waterway typically saw about 130 crossings a day.
