BRENT crude rebounded above US$106 a barrel on Monday after US President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, fuelling concerns that the disruption to global oil flows through the critical waterway could persist.
Trump said Tehran had overplayed its hand but expected negotiations to resume this week.
Iran, meanwhile, said it was awaiting a definitive US response to its seven-day proposal to reopen the strait and other demands, while insisting it would not ease its conditions after Trump rejected its latest plan.
The renewed uncertainty over the waterway, a key route for global energy shipments, has kept oil markets on edge and reversed some of the previous session’s losses.
The latest developments also come amid continuing tensions across the Middle East, with Saudi Arabia intercepting Houthi drones heading towards Riyadh and a missile targeting Khamis Mushait in the south.
Alerts were also issued in Abha and Jazan, where Saudi Aramco operates energy facilities.
In the United States, Trump is considering a ban on diesel exports as part of efforts to address elevated domestic fuel prices, adding another potential constraint to global petroleum supplies.
The oil market’s focus remains firmly on the Strait of Hormuz, with the outcome of US-Iran negotiations likely to determine whether disrupted flows can resume and how long the supply risks persist.
In Malaysia, the US dollar was trading at RM4.0763 on Monday, up 0.05% from the previous session. The ringgit was down 1.26% against the US dollar over the past four weeks but remained 3.29% stronger over the past 12 months.
The US dollar’s movement was also being influenced by expectations surrounding US interest rates, with investors awaiting key employment data and the Federal Reserve’s preferred inflation gauge due later this week.
Markets are now watching developments around the Strait of Hormuz and US-Iran negotiations for further direction on oil prices, energy supply risks and regional financial markets. - September 28, 2026
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