Global oil prices have rebounded by more than 1% percent after US President Donald Trump rejected a peace proposal from Iran to resolve their military conflict and reopen the Strait of Hormuz, maintaining heightened geopolitical tensions across the Middle East.

Brent crude futures climbed to $105.64 a barrel by 0036 GMT, whilst US West Texas Intermediate (WTI) crude rose to reach $93.11 a barrel.

Iran announced the peace initiative last week on the sidelines of the UN General Assembly in New York, confirming it had been transmitted to Washington via Qatari intermediaries.

Trump announced on Saturday that he rejected the roadmap, though he told Axios in a phone interview on Sunday that he expects American negotiators to conduct additional talks this week.

Early on Saturday, the Saudi-led coalition in Yemen confirmed it intercepted two ballistic missiles and two drones launched by the Houthis towards the kingdom.

Middle East shipping recovery

Brent edged up 0.4 percent last week, whereas WTI plunged 7.9 per cent on concerns that the US administration might ban diesel exports to curb record domestic fuel prices—a step that could restrain American refinery output.

Meanwhile, crude oil exports from key Middle Eastern producers rebounded in September to 12.8 million barrels per day (bpd), marking the highest volume recorded since the war erupted in February, according to preliminary shipping data from Kpler on Monday, as Saudi Arabia and the United Arab Emirates ramped up deliveries.

The recovery was driven by a restoration in shipments traversing the Strait of Hormuz, which were projected to reach approximately 7.4 million bpd this month.

The shift occurred as Saudi Arabia redirected exports away from the Red Sea port of Yanbu towards its eastern terminal at Ras Tanura following militant strikes that damaged its East-West pipeline.