Brief
Oil Prices Rise Above $100 as Trump Rejects Iran’s Hormuz Reopening Plan
Brent futures jumped 1.4% to $106.80 and U.S. WTI rose 1% to $93.50 as traders priced in a continued closure of the world’s most critical oil chokepoint.
By Felo News Desk · Published
Oil prices surged on Tuesday, September 29, 2026, as President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz, keeping the vital waterway effectively closed. Brent crude rose 1.4% to $106.80 and U.S. West Texas Intermediate (WTI) climbed 1% to $93.50, according to Asian market data at 10:19 am Beijing time. Abu Dhabi’s Murban crude led the gains, up 3.4% to $116.90, reflecting tighter Gulf supplies and higher freight costs after a Saudi pipeline outage that curtailed Red Sea exports.
Impact of the Strait Closure
Trump’s rejection has kept commercial shipping traffic through Hormuz at roughly 75–90% below pre‑conflict levels, the UK Maritime Trade Operations Centre (UKMTO) reports. The closure, in place since fighting erupted in February, has forced tankers to idle, take longer detours or rely on limited “authorised” corridors, while Iran’s Gulf Strait Authority warns ships against using unauthorised routes under threat of consequences.
Red Sea and Bab al‑Mandab Under Pressure
With Hormuz blocked, Saudi Arabia has leaned more heavily on pipelines to the Red Sea and on the Bab al‑Mandab Strait, but that gateway is now under intensified strain from Houthi attacks that have cut weekly transits to about 25 vessels from higher pre‑war levels. Analysts warn that sustained Houthi pressure could create a second maritime front, forcing more carriers to reroute around Africa’s Cape of Good Hope, adding weeks of sailing time and significantly higher freight and insurance costs.
Broader Market Effects
The dual disruptions in Hormuz and the Red Sea have tightened global oil supplies, pushed benchmark prices above $100 a barrel at points, and raised the risk of further inflationary pressure on fuel and goods that depend on Middle East shipping lanes. Natural gas edged up 0.9% to $3.13 as traders weighed Middle East tensions against seasonal demand.
Key facts
- Brent crude rose 1.4% to $106.80 (gulfnews.com)
- U.S. WTI climbed 1% to $93.50 (gulfnews.com)
- Murban crude up 3.4% to $116.90 (gulfnews.com)
- Commercial shipping through Hormuz is 75–90% below pre‑conflict levels (gulfnews.com)
- Red Sea transits cut to about 25 vessels weekly due to Houthi attacks (gulfnews.com)
Background
The U.S.–Iran standoff has escalated with Iran detaining a tanker, Saudi pipeline repairs underway, and the U.S. preparing talks with Gulf leaders. Earlier this month, Trump dubbed the Strait of Hormuz the “Trump Strait” on Truth Social, while Iran’s foreign minister presented a seven‑day proposal to reopen the waterway. The proposal hinges on the U.S. lifting its naval blockade, waiving oil sanctions, and observing a ceasefire that includes Lebanon. The dispute has already pushed up global oil prices and inflation, with traders pricing in a significant geopolitical premium.
Timeline
- 2026-09-13 — Oil prices stayed above $100 a barrel as Hormuz shipping risks persisted
- 2026-09-18 — U.S.–Iran conflict escalated; UAE residents faced flight, oil, and shipping risks
- 2026-09-26 — Trump called the Strait of Hormuz the “Trump Strait” amid Iran deal talks
Why it matters
Oil prices above $100 a barrel heighten inflationary pressure on fuel and goods that rely on Middle East shipping lanes.
What happens next
No immediate steps announced; traders await a potential deal to reopen Hormuz.
Sources
- [1] gulfnews.com — originally reported as “Oil Prices Surge Above $100 as Trump Rejects Iran Hormuz Deal, Murban Crude Jumps 3% Amid Dual Middle East Chokepoint Crisis”
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