Oil heads higher as US-Iran peace talks in stalemate

Oil prices rose more than 1% on Monday after US President Donald Trump rejected an Iranian peace plan meant to end the conflict, The Express Tribune reported. Iran unveiled the plan last week at the UN General Assembly, and Qatari mediators relayed it to Washington. Trump still told Axios on Sunday he expected more talks this week, despite rejecting the plan on Saturday.

Brent futures climbed to $105.64 a barrel by 0536 PKT, a gain of $1.32 or 1.27%, while West Texas Intermediate stood at $93.11 after adding 70 cents, or 0.76%. Brent had risen 0.4% over the previous week, whereas WTI dropped 7.9% amid worries that Washington could halt diesel exports to bring down record fuel prices. ANZ analysts said record US diesel prices were adding to inflation risks and reviving debate over possible export restrictions.

Kpler's preliminary figures, released on Monday, showed Middle East crude exports climbing in September to 12.8 million barrels per day, the highest since fighting began in February. The gain reflected stronger Saudi and UAE shipments, along with a rebound in Strait of Hormuz flows that were heading toward approximately 7.4 million bpd this month. Saudi Arabia redirected some barrels from Yanbu, a Red Sea port, to Ras Tanura after attacks damaged its East-West pipeline.