Oil Price Today: Brent Rises Above $105 as US–Iran Talks Stall

Key Takeaways

• Oil prices rose in early Asian trading on September 28 after the United States rejected an Iranian peace proposal linked to reopening the Strait of Hormuz.
• Brent crude futures traded at $105.64 a barrel, up 1.27%, while West Texas Intermediate (WTI) stood at $93.11, up 0.76%.
• Recovering Middle Eastern exports may ease some supply pressure, but stalled diplomacy and continued security risks are keeping the oil market volatile.

Brent Rebounds Above $105 as US–Iran Talks Stall

Oil prices climbed on Monday, September 28, as hopes for a quick reopening of the Strait of Hormuz faded following the rejection of an Iranian peace proposal. The shift returned attention to the risk of further disruption to crude shipments from the Middle East, even as regional exports have recently improved.

Brent crude futures, the international benchmark, rose $1.32, or 1.27%, to $105.64 a barrel by 8:36 a.m. Singapore time. US benchmark WTI gained 70 cents, or 0.76%, to $93.11 a barrel. Both contracts were higher at that point in the session, although prices can change rapidly as trading continues.

The fresh rise followed an uneven week for the two benchmarks. Brent gained about 0.4% over the previous week, while WTI fell 7.9%. That divergence shows how domestic US fuel-policy concerns and global shipping risks can affect the benchmarks differently, even when they respond to the same geopolitical headlines.

Why the Strait of Hormuz Is Back in Focus

Iran presented a proposal last week to end the conflict with the United States and reopen the Strait of Hormuz, a crucial route for energy shipments. The plan was conveyed through Qatari mediators. US President Donald Trump said over the weekend that he had rejected it, although he also indicated that further talks could take place this week.

The rejection does not rule out additional negotiations. It does, however, delay any clear resolution for traders trying to assess when shipping through the waterway might return to normal. Until there is a durable agreement and reliable passage for tankers, the possibility of renewed interruptions can continue to influence crude prices, freight costs and refined-product markets.

Security concerns extend beyond negotiations. Missile and drone attacks directed toward Saudi Arabia have kept attention on the vulnerability of regional infrastructure. A fresh disruption to production facilities, pipelines or export terminals could quickly change expectations for available supply. Conversely, sustained progress in talks and safer shipping would reduce some of the risk built into oil prices.

Recovering Exports Complicate the Supply Picture

The market is balancing those geopolitical risks against evidence that more crude is moving out of the Middle East. Preliminary shipping estimates put September exports from key regional producers at 12.8 million barrels a day, the highest level since the conflict began in February. Saudi Arabia and the United Arab Emirates contributed to the increase.

Shipments through the Strait of Hormuz were on course to reach about 7.4 million barrels a day in September. Saudi Arabia has also adjusted its export routes following damage to its East–West Pipeline. These developments suggest that producers and shippers have found ways to restore some flows despite the conflict, but they do not establish that supply chains have fully normalized.

The distinction matters for the direction of oil prices. Improving exports can limit the upside from geopolitical headlines by putting more barrels into the market. Yet the same barrels remain exposed to changing security conditions, vessel availability and transport costs. Prices can therefore rise on a diplomatic setback even while physical shipment data show a partial recovery.

The broader oil market remains strained. The International Energy Agency's September assessment projected that global oil supply would fall by 5.7 million barrels a day in 2026 from the previous year. It also highlighted pressure in diesel and other refined products, where disruptions and limited refinery capacity have created a different set of constraints from those affecting crude alone. Those projections provide context for the market's sensitivity to fresh news, rather than a prediction of Monday's intraday price move.

Why Brent and WTI Can Move Differently

Brent and WTI are both crude oil benchmarks, but they reflect different trading and delivery markets. Brent is particularly sensitive to internationally traded supply and seaborne transport. WTI is the main US benchmark and can also react to domestic inventories, refinery demand and policy developments.

Last week's split between the contracts illustrates the point. WTI's sharp weekly decline coincided with discussion of possible US diesel export restrictions, which could affect domestic refinery economics. Brent held up better as risks surrounding Middle Eastern supply and shipping continued to weigh on the international market. The two prices should therefore be compared using the same time, contract type and trading session; mixing quotes from different sources can create a misleading picture of their spread or direction.

For the coming sessions, developments in US–Iran talks are likely to remain central. Traders will also watch whether the recent rebound in Gulf exports continues, whether shipping through Hormuz becomes more dependable and whether attacks affect Saudi infrastructure. US fuel-policy discussions may exert a separate influence on WTI and refined products.