DTN Oil Update
Oil Jumps after Trump Rejects Truce Offer, Mulls Strikes
VIENNA (DTN) -- Oil prices jumped Monday (9/28) morning after U.S. President Donald Trump over the weekend rejected an Iranian peace proposal amid reports he was considering new military strikes on the country.
By 8:35 a.m. EDT, ICE Brent for November delivery was up $2.51 to trade near $106.83 bbl, and NYMEX WTI for November delivery rose $2.4 to $94.81 bbl.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
Downstream, NYMEX ULSD for October delivery advanced $0.1771 to $4.8618 gallon, and front-month RBOB futures edged higher $0.0137 to $3.4071 gallon.
The U.S. dollar index strengthened by 0.14 points to 100.85 against a basket of foreign currencies.
The proposal submitted by Tehran last week was reportedly similar to the memorandum of understanding signed by both sides in June, with Iran offering to lift its blockade of the Strait of Hormuz in return for an end to the U.S. blockade of Iranian ports. Iranian oil exports, a significant revenue source for Tehran, have since the reinstatement of the U.S. naval embargo in July collapsed.
The rejection stoked concerns over the oil supply disruption dragging into November. The Wall Street Journal on the weekend reported that Trump told aides he was considering relaunching bombing campaigns after the midterms, while publicly communicating to be seeking a diplomatic resolution following the November elections.
The possibility of a U.S. diesel export ban, meanwhile, continued to weigh on U.S. crude prices, driving the Brent-WTI spread above the $12 bbl mark in early Monday morning trade, its highest since the end of March. A ban on diesel exports would likely result in U.S. refiners reducing processing rates, lowering domestic crude oil demand.
Middle Eastern crude oil exports have this month rebounded to their highest since the start of the war in late February, yet signs of near-term physical supply tightness persisted despite reports of easing disruptions. Brent's forward curve has considerably steepened over the past four weeks, with backwardation being most pronounced on the front end of the curve. On Monday, Brent's prompt spread soared past $7 bbl for the first time since May 1, albeit partly propelled by a rally in the November contract on its penultimate trading day.
(c) Copyright 2026 DTN, LLC. All rights reserved.