Oil prices rose on Monday as Middle East tensions kept markets on edge after US President Donald Trump rejected Iran’s proposal to end the conflict and reopen the Strait of Hormuz. With this, oil markets have continued to remain volatile for seven months now, since US and Israel launched joint stirkes on Iran on Febraury 28.Brent crude climbed 1.18% to $105.50 a barrel, while US West Texas Intermediate (WTI) gained 0.77% to $93.12.The latest gains after Iran put forward a peace proposal at the United Nations General Assembly in New York last week. Tehran said the proposal had been conveyed to the US through Qatari mediators. However, the proposal was rejected by Trump on Saturday.The US President told Axios in a phone interview that he expected US negotiators to enter into further talks this week, leaving the possibility of renewed discussions open even as the proposed deal was rejected.Tensions in the region also remained elevated following a statement from Yemen’s Saudi-led coalition. Early on Saturday, the coalition said it had intercepted two ballistic missiles and two drones launched towards Saudi Arabia by the Iran-backed Houthis.The latest gains in oil came after a mixed performance last week. Brent had edged 0.4% higher over the week, while WTI dropped 7.9% as concerns grew that the US could prohibit diesel exports to bring down record prices.A US restriction on diesel exports could also reduce refining output in the country. At the same time, it would tighten supplies in markets outside the US, with European prices responding to the prospect of lower American diesel availability.Despite the continued tensions, oil exports from major Middle East producers picked up in September. Preliminary Kpler data showed crude exports from key producers had risen to 12.8 million barrels per day, the highest level since the war began in February.Saudi Arabia and the United Arab Emirates contributed to the increase by raising their exports. The recovery also reflected a rise in shipments through the Strait of Hormuz, with flows through the key waterway expected to reach about 7.4 million barrels per day this month.Saudi Arabia shifted exports from the Red Sea port of Yanbu to Ras Tanura on its eastern coast after attacks damaged its East-West pipeline. The diversion contributed to the recovery in shipments through the Strait of Hormuz.