⚡️🇺🇸🇮🇷 — Oil prices rose about 2% on Monday after President Trump rejected a peace deal from Iran to resolve their conflict and reopen the Strait of Hormuz, though he told Axios he expects U.S. negotiators to engage in more talks this week, according to Reuters.

➡️ Brent futures were up $1.68, or 1.6%, at $106 a barrel, while U.S. West Texas Intermediate crude was at $94.10, up $1.69, or 1.8%. Iran announced a peace proposal last week at the UN General Assembly, saying it had been transmitted to the Americans via Qatari mediators. Mediators are expected to hold separate talks with the U.S. and Iran on Monday or Tuesday.

➡️ Yemen's Saudi-led coalition said early Saturday it intercepted two ballistic missiles and two drones launched by the Iran-backed Houthis toward the kingdom. Crude exports from key Middle East producers rebounded in September to 12.8 million barrels per day, the highest since the war started in February, as Hormuz flows recovered to about 7.4 million bpd and Saudi Arabia diverted exports from Yanbu to Ras Tanura after attacks damaged its East-West pipeline.

➡️ UBS analyst Giovanni Staunovo said that despite more vessel traffic through Hormuz, "flows remain below pre-conflict levels, keeping the market undersupplied." WTI lost more than 7% last week on concerns the U.S. may ban diesel exports to ease record prices, with European low-sulphur gasoil's premium to Brent hitting a record of about $95 a barrel. Goldman Sachs estimated each week of a U.S. diesel export ban would raise European wholesale diesel prices by about $3 per barrel, or just under 2%.

➡️ Ukraine's military struck Russian oil facilities in the Krasnodar region, President Volodymyr Zelenskyy said Monday.

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