The Brent crude oil price diesel record high today story is back at the top of every market screen. Brent futures quickly rose 1.6 per cent to US$106.00 a barrel on Monday, bringing September’s gains to 17 per cent, while US crude futures added 1.1 per cent to US$93.47 a barrel, according to The Straits Times (via Reuters wire). This article reports publicly available market facts; it is not investment advice.
The catalyst was geopolitical, not economic. Over the weekend, US President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz, claiming Tehran was desperate to make a deal — and doubts that the two sides will reach a truce anytime soon sent oil prices popping higher again.
Brent Crude Oil Price Today: What Drove the $106 Jump
Share markets made a cautious start on September 28 as oil prices popped higher again amid doubts the United States and Iran will reach a truce anytime soon, the wire reported. Trump said talks would continue this week, though Iran shows no sign of watering down its proposals.
Iran announced a peace proposal last week at the United Nations General Assembly in New York, transmitted to the Americans via Qatari mediators, according to CNA. 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. Iran, meanwhile, said it would not ease its conditions after Trump rejected its latest plan, keeping the market on edge.
Early-morning trading showed the move had legs: Brent crude futures were trading at US$106.14 a barrel, up US$1.82 or 1.74%, while US West Texas Intermediate crude stood at US$93.55 a barrel, up 1.23%, according to Reuters.
Diesel Record High: Why Diesel Is Running Hotter Than Crude
While crude grabbed the headline, the more dangerous number is at the pump. A dearth of refining capacity has lifted diesel prices to all-time highs far above crude, raising the risk that inflation will become embedded in pricing and wage decisions, the Straits Times wire reported. Refined oil products remain the market’s pressure point: record US diesel prices are intensifying inflation risks and prompting renewed debate over potential export curbs, ANZ analysts said in a note cited by CNA.
Washington is taking the diesel problem seriously. Trump said the US is looking “very seriously” at measures to curb record diesel prices, and reports suggest the administration is considering a possible ban on diesel exports — a move that would tighten supply outside the US, with European prices reacting to the prospect of reduced American supply. Diesel is the fuel of freight, farming, and construction, so record prices there hit the real economy far more directly than crude benchmarks alone.
The Iran Standoff and the Strait of Hormuz
The renewed uncertainty over the waterway has kept oil markets on edge. The Strait of Hormuz carried about a fifth of the world’s crude and liquefied natural gas before the start of the conflict, making it the single most important chokepoint in global energy. Brent is up more than 70% this year as the US-Iran conflict enters its eighth month, according to market reporting.
Regional tensions remain elevated beyond the strait: Saudi-led coalition forces in Yemen said Saturday that air defenses intercepted Houthi drones headed toward Riyadh and a missile targeting Khamis Mushait, with alerts also issued at Abha and Jazan, which host Aramco’s energy facilities. There are modest offsets — crude exports from key Middle East producers rebounded in September to 12.8 million barrels per day, the highest since the conflict began in February, as Saudi Arabia and the UAE boosted shipments — but traders continue to monitor physical flows through Hormuz, where any disruption can send prices spiking within hours.
What $106 Oil Means for Inflation, Rates, and Growth
Central banks have responded with a round of rate hikes, with the Reserve Bank of Australia likely to be the next to tighten when it meets on September 29. Markets now imply a 66 per cent chance the Federal Reserve will hike for a second straight meeting in October, with around 90 basis points of tightening priced out to late 2027.
Remarkably, equities remain close to record levels despite the energy shock. A run of strong US economic data has supported expectations for corporate earnings even as bond yields surge: the Atlanta Fed’s GDPNow measure is forecasting growth of a racy 5.0 per cent for this quarter, and activity has also proven upbeat in Asia and Europe, thanks in part to the boom in AI investment.
“The global expansion appears to have entered a phase of broad-based strength rarely seen over the past two decades,” said Bruce Kasman, chief economist at JPMorgan. “Amidst strong growth and firming perceptions of resilience to high energy prices, it is no surprise that rates are moving higher while equity prices remain close to record levels.”
The Iran standoff has a security dimension as well: over the weekend, five men were arrested near a US air base in Britain amid fears of an attack linked to the tensions. Read our report on the RAF Fairford arrests and what Trump said about them.
Brent Crude Oil Price Diesel Record High: FAQs
Q: What is the Brent crude oil price today?
A: Brent futures rose 1.6% to US$106.00 a barrel on Monday, September 28, bringing gains for September to 17%. US crude (WTI) added 1.1% to US$93.47 a barrel, according to the Straits Times/Reuters wire.
Q: Why did oil prices jump on September 28?
A: US President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz over the weekend, and doubts that the US and Iran will reach a truce anytime soon pushed prices higher again.
Q: Why are diesel prices at record highs?
A: A dearth of refining capacity has lifted diesel to all-time highs far above crude, according to the wire reporting. Record US diesel prices are intensifying inflation risks, and the Trump administration is said to be considering measures including a possible diesel export ban.
Q: Will the Fed raise rates again in October?
A: Markets now imply a 66% chance the Federal Reserve will hike for a second straight meeting in October, with the Atlanta Fed’s GDPNow forecasting 5.0% Q3 US growth. This is market pricing, not a decision — this article reports market facts only and is not investment advice.
