Oil gains over 2% as US-Iran peace talks in stalemate

Brent crude rose more than 2% on Monday, according to Business Recorder, after US President Donald Trump turned down an Iranian peace offer aimed at ending the conflict and reopening the Strait of Hormuz. Brent futures climbed by $2.60, a 2.49% increase, reaching $106.92 a barrel at 0803 GMT. The US benchmark, West Texas Intermediate, stood at $94.49 per barrel after adding $2.08, or 2.25%.

Although Trump had turned down the plan Iran floated last week through Qatari mediators on Saturday, he told Axios on Sunday he expected more talks this week. Capital Economics economist Hamad Hussain linked the rise to the rejection, while noting that higher flows through the Strait of Hormuz were easing some of the price pressure. He added that the wider market remained in deficit despite the improved shipments.

Preliminary Kpler data showed on Monday that Middle East crude exports climbed to 12.8 million barrels per day in September, the highest since February. Saudi Arabia and the United Arab Emirates both boosted exports. Diesel also drew attention, as the premium of European low-sulphur gasoil over Brent set a record last week near $95 a barrel after Trump backed a possible US diesel export ban. Goldman Sachs estimated that every week of such a ban would lift European wholesale diesel prices by $3 per barrel, or just under 2%.