Brent hits $106 after Trump rejects Iran's Hormuz plan: petrol holds at Rs 391.30

Update, Monday 28 September 2026, 7am PKT: oil rose in early Asian trading as markets reacted to the rejection. Brent gained 1.8% to $106.31 a barrel and US crude rose 1.3% to $93.62, CNBC reported. The Wall Street Journal reported, citing unnamed US officials, that Trump has told aides he expects US strikes on Iran to resume after the November midterm elections; Trump confirmed he had turned down Tehran's proposal and has said he expects talks to resume this week. PSO's ex-depot petrol price in Karachi is unchanged this morning at Rs 391.30, with diesel at Rs 408.53.

For a Pakistani driver, Brent at $106 rather than $104 does not move the pump price overnight, but it feeds into the next government price review on 1 October and into PSO's daily ex-depot readings. If you fill 40 litres a week, every Rs 5 change on the litre is Rs 800 a month.

Earlier: Sunday 27 September 2026. US President Donald Trump on Friday rejected Iran's offer to reopen the Strait of Hormuz within seven days. For Pakistan that means the strait that carries most of our oil and almost all of our LNG stays shut for now, Brent stays above $100, and the petrol price in Pakistan stays where the war has pushed it: Rs 391.30 a litre at PSO's Karachi depot today.

What Iran offered

Iran's plan, conveyed at the UN this week, set out a sequence ending with the strait reopening on day seven, according to Dawn and CBS News:

• a ceasefire across the region, including Lebanon and Yemen
• an end to the US naval blockade, reimposed on 14 July
• a waiver of sanctions on Iranian oil sales
• release of frozen Iranian assets, reported at more than $12 billion
• talks on Iran's nuclear programme to resume afterwards

President Masoud Pezeshkian said Tehran wants to return to the framework of the June 2026 memorandum of understanding that Pakistan mediated to end the war and reopen the strait.

What Trump said

"I'm rejecting their deal," Trump told reporters, saying Iran wanted the strait opened at once "because they are losing so badly." He claimed the US had "the greatest blockade in military history" and "total control of the Hormuz Strait." Foreign Minister Abbas Araghchi replied that Iran "does not accept coercion, threats, or intimidation" and is waiting for the mediators' formal response.

What it means for your fuel bill

Brent crude closed the week at about $104 a barrel, CBS News reported, after touching $108 on Thursday and dipping when Iran's offer surfaced. A deal would have been the first real chance of a fall. Without one, freight and war-risk insurance on every Gulf cargo stay high, and they are built into what you pay.

PSO now changes its ex-depot price most days, so small daily moves are normal: petrol went from Rs 389.28 on Friday to Rs 391.30 on Saturday, and diesel is Rs 408.53. Track both on our petrol price and diesel price pages.

In kilometres: a Suzuki Alto doing 1,000 km a month at 18 km a litre burns about 56 litres, Rs 21,913 at today's price. Every Rs 10 on the litre adds Rs 560 a month. Put in your own car and mileage with the fuel cost calculator.

What to watch

Whether Pakistan and the other mediators carry a counter-offer, whether Iran answers Trump's rejection with new strikes on shipping and whether Brent holds above $100 into October. Our background on why Hormuz hits Pakistan harder than most: 99% of Pakistan's LNG comes through Hormuz.