Oil Prices Surge as Trump Rejects Iran Peace Proposal
BBC Business reported Monday that oil prices Iran war tensions have deepened sharply, after President Donald Trump dismissed Tehran’s latest ceasefire terms as “totally unacceptable.”
Brent crude jumped 4.1% to $105.50 a barrel during Asian trade before easing slightly. The move came after Iran relayed its response to US proposals through Pakistan, which has been acting as a diplomatic intermediary.
Iran’s Terms and Washington’s Red Lines
Iran’s conditions, as reported by Tehran’s semi-official Tasnim news agency, included an immediate halt to hostilities. They also demanded guarantees that neither the US nor Israel would strike Iranian territory again.
Washington’s own demands reportedly included the full restoration of shipping through the Strait of Hormuz. Suspension of Iran’s nuclear enrichment program was also cited as a key requirement, according to Axios.
Israeli Prime Minister Benjamin Netanyahu added his own hard line. He said the conflict would not end until Iran’s enriched uranium stockpiles were eliminated entirely.
Trump’s social media response left little room for optimism. “I have just read the response from Iran’s so-called ‘Representatives,'” he wrote. “I don’t like it — TOTALLY UNACCEPTABLE.”
Background: A War That Rewrote Energy Markets
The conflict began on 28 February and immediately reshaped global energy flows. The Strait of Hormuz, a narrow waterway carrying roughly one-fifth of the world’s oil and gas shipments, has been effectively closed since shortly after fighting broke out.
Tehran threatened to attack any vessel attempting to cross the strait in retaliation for US-Israeli strikes. That threat has held, and the closure has sent prices swinging wildly ever since.
A ceasefire took hold in early April, bringing some stability. Trump extended the truce indefinitely on 21 April, giving Iran time to formulate a unified response. Brent had climbed back above $100 a barrel after the pause began on 8 April.
Energy Giants Reap the Rewards
The sustained price surge has been a windfall for major producers. Saudi Aramco chief Amin Nasser said the company’s earnings rose more than 25% in the first quarter versus the same period last year. Aramco credited its overland pipeline network for shielding output from the shipping disruption.
BP reported that first-quarter profits more than doubled compared to a year earlier. Shell also announced a sharp earnings jump last week. For consumers and importers, however, the closed strait remains a serious and unresolved supply threat.
Read Next: What the Strait of Hormuz Closure Means for Global Trade
