Oil prices rise 2% after Trump rejects Iran peace deal

Oil prices rose about 2% on Monday after US President Donald Trump rejected an Iranian peace proposal to resolve their conflict and reopen the Strait of Hormuz. Brent futures gained $2.28 to $106.60 a barrel, while US West Texas Intermediate rose $1.70 to $94.11. Iran insisted over the weekend that only diplomacy could resolve its conflict with the US and Israel, following Trump's rejection of a proposal to reopen the strait and end fighting. Qatari mediators are expected to hold separate talks with both sides Monday or Tuesday, focusing on an amended seven-day proposal. Middle East crude exports rebounded to 12.8 million barrels per day in September, the highest since the war began in February, though flows remain below pre-conflict levels. Discussions in Washington about a potential diesel export ban have widened the Brent-WTI spread to its highest since May.