Oil Prices Spike as Trump Rejects Iran Peace Terms

BBC Business reported Monday that oil prices jumped sharply after President Donald Trump dismissed Iran’s latest peace terms as “totally unacceptable.” Brent crude briefly surged past $105 a barrel before pulling back to around $103. The oil prices Iran war dynamic is now driving fresh volatility across global energy markets.

Iran Rejects Washington’s Core Demands

Tehran transmitted its response through Pakistani intermediaries. Iran’s conditions included an immediate halt to hostilities and binding guarantees against future US-Israeli strikes. Washington’s own terms had previously included restoring free passage through the Strait of Hormuz and suspending Iran’s nuclear enrichment program, according to Axios. Israeli Prime Minister Benjamin Netanyahu added that the conflict would not end until Iran’s enriched uranium stockpiles were eliminated.

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Why the Strait of Hormuz Matters So Much

The Strait of Hormuz has been effectively closed since the conflict began on 28 February. Roughly a fifth of global oil and gas shipments normally transit that narrow waterway. Tehran threatened to strike any vessels attempting passage in retaliation for US-Israeli attacks. The closure has caused massive supply disruption and sent energy prices swinging wildly since the war’s start.

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Background: A Fragile Truce and Soaring Energy Profits

A ceasefire announced in early April allowed space for negotiations. Trump extended that truce indefinitely on 21 April, giving Iran time to prepare a unified response. Brent crude climbed back above $100 after the pause in fighting took hold on 8 April. The supply shock has delivered windfall profits to major energy companies. Saudi Aramco reported a 25% earnings jump in the first quarter compared with the same period in 2025. BP’s first-quarter profits more than doubled, and Shell also posted sharply higher earnings. Aramco chief Amin Nasser warned investors that the energy shock could extend well into 2027. He noted the market had absorbed roughly one billion barrels in unprecedented supply losses. Even if the Strait reopens immediately, Nasser said, full market rebalancing would take months. OPEC output fell by 830,000 barrels per day in April to just over 20 million barrels per day, per a Reuters survey.

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