Crude Oil Prices Rise as Iran, US Remain at Odds Over Strait of Hormuz Reopening | September 28, 2026

Crude oil prices rose more than 1% on Monday, September 28, 2026, as Iran maintained its conditions for reopening the Strait of Hormuz, while the United States rejected Tehran's proposal, as per news reports. The disagreement has added uncertainty over when shipping through the key oil route will return to normal. 

Brent crude futures for November rose 1.1% to $105.48 a barrel, while West Texas Intermediate (WTI) crude futures gained 0.8% to $93.12 a barrel as of 21:09 ET (01:09 GMT). 

Iran Sets Conditions for Hormuz Reopening 

Iran has proposed reopening the Strait of Hormuz within seven days while wider negotiations continue. The proposal is conditional on Washington lifting its naval blockade, easing military pressure, removing sanctions on Iranian oil sales and agreeing to a ceasefire. 

Tehran has said it remains committed to these conditions despite US President Donald Trump's rejection of the proposal. 

US-Iran Talks Remain in Focus  

Trump has said he expects negotiations with Iran to resume this week, according to an Axios report. Qatar has also been moving between the two sides in an effort to restart discussions. 

The Strait of Hormuz is a major energy shipping route. Before the conflict began, about one-fifth of global oil and liquefied natural gas supplies moved through the waterway. Shipping activity has since fallen sharply. 

Red Sea Attacks Add to Supply Concerns  

Supply concerns have also increased following stepped-up attacks by Iran-backed Houthi forces in Yemen on Saudi Arabia and commercial shipping in the Red Sea. 

Saudi Arabia said it intercepted two ballistic missiles and two drones launched by the Houthis on Saturday. The country had also intercepted six missiles aimed towards Taif and the Yanbu area in the days before. 

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Alternative Routes and Fuel Supplies  

The disruption has pushed Gulf producers to explore alternative ways of transporting crude. However, there have been signs of increased oil movement through the Strait.  

Trump said more than 20 million barrels had passed through the waterway over the weekend, according to Axios. Markets are also monitoring refined-product supplies.  

Diesel prices in Europe and the US have reached record levels as disruptions to oil and refined-product exports from the Middle East and Russia have tightened fuel markets. 

Conclusion  

Oil prices remain sensitive to developments around the Strait of Hormuz, US-Iran negotiations and disruptions to regional shipping. Any change in the reopening conditions or the flow of crude through the waterway could affect global supply expectations. 

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