Trump ‘no’ to Iran’s peace offer sends oil soaring
Crude oil prices rose more than 4% on Monday after US president Donald Trump rejected Iran's offer to reopen the Strait of Hormuz if the US halts military strikes. The November Brent contract traded at $106.50 a barrel, up 2.09% from its previous close after hitting $108.70 during the day, while the Nifty, Nikkei, Kospi and Shanghai Composite all fell. Iranian foreign minister Abbas Araghchi had offered on Friday to reopen the Strait and restart nuclear negotiations within seven days, and a Wall Street Journal report said Trump told aides he expects US strikes on Iran to resume after November's mid-term elections.
Why it matters: The rejection and the resulting price move bear directly on the briefing's energy security theme, given that India imports 90% of its oil requirements and a sustained $1 per barrel increase raises the annual import bill by around ₹18,000 crore.