Archive · 28 Sep 2026
Trump rejection of Iran offer sends oil prices soaring
Iran offered to reopen an important sea route if the United States stopped its military strikes.
Iran also offered to restart nuclear talks within seven days.
President Donald Trump rejected that proposal.
The Strait of Hormuz carries about one-fifth of the world’s oil and gas supplies.
Because the route may stay threatened, oil prices jumped.
Higher oil prices also made stock markets in several Asian countries fall.
India may be especially affected because it imports about 90% of its oil.
Indian fuel companies are already selling petrol and diesel at prices that may not cover their costs.
Crude oil prices rose sharply after Donald Trump rejected Iran’s conditional offer to reopen the Strait of Hormuz.
Iranian Foreign Minister Abbas Araghchi offered to reopen the strait and restart nuclear negotiations within seven days if US conditions were met.
November Brent crude reached $108.70 per barrel and was later trading at $106.50, although reports described the overall surge differently.
Asian stocks fell, with India’s Nifty down 1.6% and major indexes in Japan, South Korea and China also declining.
Higher oil prices could deepen losses for Indian oil companies because India imports about 90% of its oil needs and fuel prices have remained unchanged since May.
- Who
- US President Donald Trump rejected an offer from Iranian Foreign Minister Abbas Araghchi.
- What
- Trump rejected Iran’s conditional proposal to reopen the Strait of Hormuz and restart nuclear negotiations.
- When
- Iran made the offer on Friday, Trump’s rejection was reported on Saturday, and oil prices surged on Monday.
- Where
- The proposal concerned the Strait of Hormuz amid the US-Iran conflict; market effects were reported across Asia and India.
- Why
- Iran conditioned reopening the strait and resuming talks on the US stopping military strikes and accepting its conditions.
Iran’s proposal
Trump’s rejection
Conditions for reopening the strait
Iran’s proposal
Iran offered to reopen the Strait of Hormuz and restart nuclear negotiations within seven days if the US stopped military strikes and accepted its conditions.
Trump’s rejection
Trump rejected Iran’s conditional seven-day roadmap and said the proposal had been turned down.
Future of the conflict
Iran’s proposal
Iran’s offer presented reopening the route and resuming nuclear talks as part of a plan to end the war.
Trump’s rejection
A Wall Street Journal report said Trump expected US strikes to resume after the November mid-term elections.
- Brent crude
- The November contract reached $108.70 per barrel and was trading at $106.50 around 6:30 p.m.
- Strait of Hormuz
- The route traditionally carries about 20% of global oil and gas supplies.
- Indian oil imports
- India imports about 90% of its oil requirements.
- Indian import impact
- A $1-per-barrel annual increase could raise India’s import bill by about ₹18,000 crore.
- Oil marketing margins
- Icra estimated September margins at negative ₹8 per litre for petrol and negative ₹9 for diesel.
- Cooking gas losses
- Icra estimated cooking-gas under-recoveries at about ₹300 per cylinder.
- Recent Indian imports
- India imported crude worth $74.85 billion in the first five months of FY27.