**Oil Prices Surge Following Trump's Rejection of Iran's Strait of Hormuz Proposal**
*Published on September 28, 2026*
Oil prices experienced a significant increase on Monday after U.S. President Donald Trump dismissed an Iranian proposal aimed at reopening the strategically critical Strait of Hormuz. The rejection has raised concerns about the stability of oil supplies, prompting a sharp rise in Brent crude prices, which is the international benchmark for oil.
During trading in Asia, Brent crude surged by more than 3 percent, nearing the $108 per barrel mark. As the day progressed, prices eased slightly, but Brent futures for November were still trading at $107.35 per barrel shortly before 08:00 GMT.
The market's volatility comes on the heels of Trump's comments made over the weekend, where he deemed Tehran's latest proposal as unacceptable. The proposal, presented during the United Nations General Assembly, suggested that the U.S. would release frozen Iranian funds, lift sanctions, and end its naval blockade on Iranian ports. In return, Iran would agree to reopen the Strait of Hormuz and return to negotiations regarding its nuclear program within a week.
The Strait of Hormuz is a vital maritime route, with approximately one-fifth of the world's oil supplies passing through it before the onset of the current conflict. Since the U.S. and Israel initiated strikes against Iran in late February, commercial shipping in the strait has significantly declined due to a series of attacks on vessels, which have largely been attributed to Iran and its allied groups.
Recent data from maritime intelligence platform MarineTraffic indicates that vessels made 132 transits of the strait from September 21 to 27, a slight increase from 116 the previous week. However, this figure pales in comparison to the pre-war average of approximately 130 crossings each day, highlighting the ongoing disruptions in maritime traffic.
The broader financial markets in the Asia Pacific region showed mixed results following the news. Japan's Nikkei 225 index fell by 0.73 percent, while South Korea's Kospi index dropped by 2.70 percent. Conversely, Hong Kong's Hang Seng Index saw a modest rise of 0.54 percent, and Australia's S&P/ASX 200 edged up by 0.17 percent. These fluctuations reflect the market's sensitivity to geopolitical developments, particularly those affecting oil supply chains.
As the situation unfolds, analysts are closely monitoring the implications of Trump's rejection of the Iranian proposal on global oil markets and the potential for further escalations in the region. The ongoing conflict and its impact on oil supply routes remain a critical concern for both investors and governments worldwide.