Crude markets rallied early on Monday, with benchmark Brent crude climbing back above the $106 per barrel mark after a brief dip the previous week. The price surge coincided with an uptick in U.S. Treasury yields, reflecting renewed risk‑off sentiment among investors.
The rebound followed a Friday decline in oil prices that had been driven by reports of an Iranian overture for a seven‑day truce and a wave of optimism surrounding the United Nations General Assembly. Analysts had interpreted the diplomatic gesture as a potential de‑escalation in the region, which temporarily eased concerns over supply disruptions.
President Donald Trump, speaking to Axios, indicated that while he expects diplomatic talks to continue, he believes Tehran has "overplayed their hand". He added, "They want to make a deal, but it is not the deal that I want to make... It is what we would have maybe agreed to a year ago," signaling a rejection of the specific terms put forward by Iran.
The president’s comments appeared to shift market sentiment, prompting traders to reassess the likelihood of a near‑term resolution to the tensions that have kept oil prices elevated. By the opening of European markets, Brent had recovered to levels above $106, while U.S. crude futures also posted gains. Bond markets reacted in kind, with yields on benchmark Treasury securities edging higher as investors priced in renewed geopolitical risk.
Middle East Eye reported that the price movement underscores the sensitivity of global energy markets to diplomatic signals from Washington and Tehran. The episode illustrates how quickly market dynamics can reverse in response to political statements, especially when they pertain to conflict zones that influence oil supply chains.
Reporting attribution: based on reporting by Middle East Eye — original source: https://www.middleeasteye.net/live-blog/live-blog-update/oil-prices-spike-after-trump-rejects-iran-proposal.