Brent crude oil rebounded more than 3% on Monday after US President Donald Trump rejected a peace deal from Iran to resolve their conflict and reopen the Strait of Hormuz, writes Reuters.

Brent futures rose $3.98, or 3.82%, to $108.30 a barrel at 0959 GMT, while US West Texas Intermediate crude was at $95.93 a barrel, up $3.52 or 3.81%.

"Oil prices appeared to have jumped on the back of President Trump rejecting Iran`s peace proposal", said Hamad Hussain, senior climate and commodities economist at Capital Economics.

Iran announced a peace proposal last week at the UN General Assembly in New York, saying it had been transmitted to the Americans via Qatari mediators. Trump ⁠said on Saturday he rejected the plan, but told Axios in a phone interview on Sunday that he expected US negotiators to engage in more talks this week.

"While greater flows through the Strait of Hormuz are easing some of the upward pressure on prices, the bigger picture is that the oil market remains in a deficit", - Hussain said.

Yemen`s Saudi-led coalition said on Saturday it had intercepted 2 ballistic missiles and 2 drones launched by the Iran-backed Houthis towards the kingdom.