Oil Prices Today, September 28, 2026: Brent Crude Up Almost 2% At $106.2 Per Barrel After Trump Rejects Iran Proposal

Mumbai, September 28: Oil prices climbed on Monday after US President Donald Trump rejected an Iranian proposal aimed at resolving the conflict between the two countries, keeping uncertainty around the Strait of Hormuz and Middle Eastern oil supplies in focus. Brent crude futures rose 1.8% to $106.2 a barrel, while US West Texas Intermediate crude gained 1% to $93.4 a barrel. 

The latest gains came after oil prices had retreated sharply in the previous session, with traders assessing the prospects of a diplomatic resolution to the conflict and the potential implications for crude supply. The continued uncertainty around the reopening of the Strait of Hormuz has kept a risk premium in oil prices, while markets are also monitoring the extent to which producers in the region can maintain exports. 

Trump rejects Iran proposal 

Iran presented a peace proposal at the United Nations General Assembly last week, with the offer transmitted to the US through Qatari mediators, according to people familiar with the discussions cited by Reuters. Trump rejected the proposal on Saturday, although he said on Sunday that US negotiators were expected to hold further talks with Iran this week. 

The conflicting signals have left investors uncertain about the prospects of a breakthrough. Any progress towards an agreement could ease concerns about disruptions to crude supplies, while a further deterioration in relations could increase the risk premium embedded in oil prices. 

The Strait of Hormuz remains central to the outlook. The waterway is one of the world’s most important oil transit routes, and prolonged disruption could affect supplies to global markets and place further upward pressure on crude prices. 

Also Read: How To Invest In Crude Oil

Middle East supply risks remain 

The oil market is also watching military developments across the region. Attacks involving Iran and Iran-backed Houthi forces have continued to raise concerns over the security of regional energy infrastructure and shipping routes. 

The persistence of geopolitical risks comes as crude exports from major Middle Eastern producers show signs of recovering. Preliminary data from Kpler indicated that crude exports from key producers in the region rose to around 12.8 million barrels per day in September, the highest level since the conflict began in February. 

Shipments through the Strait of Hormuz were also expected to increase to around 7.4 million barrels per day during the month, helped by higher exports from Saudi Arabia and the United Arab Emirates. 

The recovery in exports has provided some relief to the market, but traders remain wary that the situation could change quickly if military activity intensifies or shipping through the strait faces further disruption. 

US diesel prices in focus 

Oil markets are also assessing developments in the US refined-products market, particularly the sharp rise in diesel prices. 

Record-high US diesel prices have prompted discussion about possible restrictions on diesel exports as policymakers look at ways to increase domestic availability. Any restrictions could, however, tighten supplies in other markets and potentially push up prices in regions such as Europe. 

The prospect of changes to US diesel exports adds another layer of uncertainty to global energy markets. Traders are therefore balancing concerns over geopolitical supply disruptions against signs that crude exports from some Middle Eastern producers are recovering. 

What it means for India 

The rise in crude prices is particularly important for India, which meets a large portion of its oil requirements through imports. Sustained Brent prices above $100 a barrel could increase pressure on the country’s import bill and trade balance, while also creating challenges for inflation and the rupee. 

Higher crude prices can also affect the margins of oil-consuming industries, particularly sectors with limited ability to pass higher input costs on to consumers. Conversely, upstream oil producers can benefit from higher realisations. 

For Indian equity markets, the renewed rise in Brent crude is therefore likely to remain a key factor influencing sentiment. Investors will also track the rupee, global bond yields and foreign fund flows alongside developments in the Middle East. 

Oil outlook 

The near-term direction of crude prices is likely to depend heavily on diplomatic developments between the US and Iran and the security of shipping through the Strait of Hormuz. A credible agreement that restores normal shipping could remove some of the geopolitical premium from oil, while further disruptions could keep prices elevated. 

For now, the market remains caught between recovering regional exports and the possibility of renewed supply disruptions. With Brent back above $106 a barrel, traders are likely to closely monitor the next round of US-Iran talks and any developments affecting crude flows through the region. 

Source

•  oilprice.com