Brent crude climbs above $107 as US rejects Iran’s Hormuz proposal

Brent crude rose more than 3 percent on Monday, reaching just under $108 a barrel after US President Donald Trump dismissed Iran’s offer to reopen the Strait of Hormuz within seven days.

Trading in Asia saw Brent futures for November at $107.35 a barrel shortly before 08:00 GMT, following an earlier surge that pushed the benchmark above $107 per barrel.

The price increase came after Trump said on Saturday that Tehran’s proposal – announced at the United Nations General Assembly – was not acceptable. The Iranian plan called for the United States to release frozen Iranian funds, lift sanctions and end its naval blockade on Iranian ports in exchange for Iran reopening the strait and returning to nuclear negotiations within a week.

Market reactions were mixed across the Asia‑Pacific region. Japan’s Nikkei 225 and South Korea’s Kospi fell 0.73 percent and 2.70 percent respectively, while Hong Kong’s Hang Seng rose 0.54 percent and Australia’s S&P/ASX 200 edged up 0.17 percent.

Before the conflict escalated, roughly one‑fifth of global oil supplies passed through the Strait of Hormuz, linking the Gulf to the Gulf of Oman and the Arabian Sea. Vessel transits fell sharply after the war began, with 132 crossings recorded between 21 and 27 September, up from 116 the previous week, according to MarineTraffic.

Source: Al Jazeera. Photo: Александр Лич / Pexels.