Oil prices rose over 1% with Brent reaching $106.31 after President Trump rejected an Iranian proposal regarding the Strait of Hormuz. In domestic developments, a federal court allowed an antitrust suit against major shale producers to move forward, while another judge dismissed Michigan's overcharge lawsuit against major oil firms. Meanwhile, the US Energy Department allocated nearly $2 billion to upgrade electricity grid capacity.
01Policy
US Energy Department Allocates $2 Billion to Upgrade Power Grid
The Energy Department announced on Thursday that it will spend almost $2 billion to squeeze more electricity out of the nation's aging . The funding will support 31 projects across 26 states designed to generate more than 23 gigawatts of additional electricity capacity, an amount sufficient to power 16 million homes. These projects will deploy sensors and other real-time monitoring devices to track weather conditions and redirect power away from congested transmission paths. Officials estimate the upgrades could improve reliability and lower electricity costs for roughly 100 million Americans. The $1.9 billion in federal funding comes from the bipartisan infrastructure law and will be matched by $3.35 billion in cost-share funding from project recipients. State agencies in Colorado, Indiana, Ohio, and Oklahoma collected $810 million collectively as the largest recipients, while PPL Corp. secured $71.5 million for a project in northern Pennsylvania. The initiative targets component enhancements across more than 1,500 miles of transmission lines and technological upgrades across nearly 21,000 miles. Energy Secretary Chris Wright promoted the grants at a PPL facility in Allentown, noting that the selected projects were prioritized for rapid deployment ahead of winter weather demands. The push arrives as accelerate electricity demand faster than new power plants can be constructed, driving up bills and straining regional grids.
Oil Rises 1% as Trump Rejects Iranian Proposal on Hormuz Strait
U.S. rose 1.3% to $93.62 a , while international gained 1.8% to $106.31 a barrel in early Asia trading on Monday, CNBC reported. The price increases followed President Donald Trump rejecting an Iranian proposal to reopen the Strait of Hormuz and end the Middle East conflict. Trump turned down Tehran's conditional offer and told aides he expects U.S. strikes on the country to resume after November's midterm elections, according to The Wall Street Journal. Trump confirmed the rejection to reporters, stating he turned down the latest proposal. Iranian Foreign Minister Abbas Araghchi previously offered to reopen the shipping route and restart nuclear negotiations within seven days if the U.S. ended acts of aggression, lifted the naval blockade, and released Iranian . Meanwhile, Yemen's Saudi-led coalition intercepted projectiles launched by Houthi rebels on Saturday. The conflict began with U.S. and Israeli airstrikes on Iran on Feb. 28.
Iran Keeps Indirect Talks With US Open Amid Strait of Hormuz Dispute
Iran is maintaining indirect negotiations with the United States while insisting that any reopening of the Strait of Hormuz remains conditional on the fulfillment of its demands. Iranian Foreign Minister Abbas Araghchi stated that Tehran has conveyed a seven-day plan through Qatari mediators to restore normal maritime passage, provided that Washington lifts oil sanctions, releases frozen Iranian , and ends its naval blockade. US President Donald Trump rejected the proposal on Saturday, asserting that Iran is seeking an immediate deal because it is losing the conflict. Araghchi responded that Tehran has received no official communication of rejection through mediators and will wait for a definitive position before deciding its next steps. Meanwhile, the Islamic Revolutionary Guard Corps seized a US Remus 600 unmanned underwater vehicle, a move military officials claim strengthens Iran's negotiating position. The seven-month-old conflict has effectively closed the vital waterway, through which a fifth of the world's gas and oil supply usually flows, driving energy prices higher. The Trump administration has implemented an economic blockade dubbed Operation Economic Outcast, which has prompted regional banks and airlines in Turkey and the United Arab Emirates to halt transactions and flights involving Iran. Iranian President Masoud Pezeshkian stated that Tehran has lost faith in the United States as a negotiating partner following renewed military strikes that dissolved a memorandum of understanding signed in June. While Oman and Pakistan continue to facilitate indirect talks, the standoff continues to sustain high energy market risks and restrict regional shipping.
Michigan Judge Dismisses State's Antitrust Lawsuit Against Major Oil Companies
U.S. District Judge Jane Beckering dismissed Michigan's lawsuit against four major oil companies and the American Petroleum Institute on September 22, 2026. Michigan Attorney General Dana Nessel had filed the 126-page action in January 2026, alleging that BP, Chevron, Exxon, Shell, and the trade association colluded since around 1979 to forestall competition in and electric vehicles. Judge Beckering held that antitrust laws protect against none of the state's identified injuries except energy overcharges, and that those alleged overcharges were too remote from the conspiracy to establish proximate cause. The decision marks at least the eighth federal and state court rejection of similar climate-related lawsuits following prior dismissals across jurisdictions including Delaware, Maryland, New Jersey, New York, Pennsylvania, Puerto Rico, and South Carolina. A spokesman for Nessel stated that the attorney general disagreed with the ruling and was reviewing potential , including an appeal. The dismissal leaves the Sherman Act claim ended with prejudice while the broader legal and regulatory battle over policies continues.
Federal Court Allows Antitrust Claims Against Shale Producers to Proceed
The U.S. District Court for the District of New Mexico allowed conspiracy claims against the nation's largest shale producers to proceed in the 54-count consolidated class action In re Shale Oil Antitrust Litigation. Plaintiffs alleged that eight shale oil producers, including Permian Resources, Expand Energy, Continental Resources, Diamondback Energy, EOG Resources, Hess, Occidental Petroleum, and Pioneer Natural Resources, along with former executives Scott Sheffield and John B. Hess, conspired to restrain domestic production and artificially inflate prices. During the Shale Revolution, defendants allegedly became swing producers and collectively throttled production growth beginning around 2021 despite prices soaring past $120 per and breakeven costs hovering around $30. Plaintiffs pointed to private dinners with officials at CERAWeek, public statements touting discipline over growth, and FTC consent decrees that barred Sheffield and John Hess from joining the boards of their companies' acquirers. Defendants argued the case was nonjusticiable and that end-payors lacking direct purchases had no standing, but the court rejected these arguments while trimming a handful of state-law claims such as Alabama's. The court found plaintiffs plausibly alleged parallel conduct through reduced relative growth rates and plus factors including a top-heavy market structure, interfirm communications, horizontal shareholding by institutional investors like BlackRock, Vanguard, and State Street, and actions against economic self-interest.
BP Explores Expanding US Shale Footprint Following Devon Deal Talks
BP walked away from talks to acquire Devon Energy's South Texas Eagle Ford after entering the data room, leaving the 90,000 net-acre position without a confirmed buyer. TPH Research valued the package at approximately $4.5 billion, while Reuters sources placed the expected range between $3.5 billion and $4 billion. The $500 million spread between buyer caution and seller expectations widened enough to stall final negotiations amid elevated prices driven by the US conflict with Iran. Devon is divesting the Eagle Ford acreage alongside its Powder River Basin holdings following its $58 billion all-stock with Coterra Energy in the first quarter of 2026. The combined company produces over 1.6 million barrels of oil equivalent per day. For BP, entering the data room marked a tactical shift under CEO Meg O'Neill, who took the helm in April and has redirected the company toward traditional oil and gas. The move followed a second-quarter financial recovery in which BP posted $5.7 billion in underlying replacement cost profit, more than double its result from a year earlier. BPX Energy, the company's US shale unit, produced approximately 545,000 boepd in the second quarter, including roughly 205,000 boepd from its existing Eagle Ford footprint, and maintains a target of over 650,000 boepd by 2030. Despite that operational alignment, BP opted to preserve discipline rather than bridge the gap. BP shares fell 3.4% on Friday following the reports, while Devon shares closed 1.8% higher on Thursday.
Petrovietnam Refining and Petrochemical Corp signed a framework agreement with ExxonMobil Asia Pacific to explore supplies for its Dung Quat Refinery. The agreement was exchanged on Wednesday in New York during a high level roundtable between Vietnam leaders and United States corporate executives, witnessed by Vietnamese Party General Secretary and President To Lam. BSR has tested three additional crude types since the start of 2026, raising the total number of processable grades to 40, comprising 12 domestic and 28 imported varieties. The refinery imported about 8.28 million tons of crude oil in 2025, with imported crude accounting for around 31 percent of total feedstock. For 2026, BSR expects imported crude to account for about 15 percent of feedstock, sourced from regions including West Africa, the Mediterranean, and Southeast Asia. The company has also completed technical evaluation and processing of Nigeria Erha crude at a maximum blending ratio of about 45 percent by volume, and Sao Vang Dai Nguyet condensate at up to about 12 percent. BSR has separately signed crude supply agreements with Chevron to support stable feedstock availability for the refinery.
Geopolitical friction in the Middle East and domestic legal pressure on US shale producers threaten supply stability and elevate market volatility. Whether US sanctions strategy or Iranian mediation will break the deadlock over the Strait of Hormuz remains unresolved.
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