Oil Prices Surge as Trump Rejects Iran Peace Proposal
BBC Business reported Monday that oil prices climbed sharply after President Donald Trump dismissed Iran’s latest peace overture as “totally unacceptable,” deepening uncertainty over the months-long conflict.
Brent crude rose 4.1% to $105.50 a barrel in Asian trading before pulling back slightly. The move came after Tehran transmitted its response to Washington through Pakistan, which has been acting as an intermediary.
Iran’s Terms and Washington’s Rejection
Iran’s conditions, relayed via Pakistan and reported by the semi-official Tasnim news agency, included an immediate halt to hostilities and binding assurances against future US-Israeli military action.
Washington had set its own requirements. According to Axios, those terms included restoring free passage through the Strait of Hormuz and suspending Iranian uranium enrichment.
Trump posted bluntly on social media that he had read Tehran’s response and found it deeply unsatisfactory. Israeli Prime Minister Benjamin Netanyahu added his own condition, saying the conflict would not end until Iran’s enriched uranium stockpiles were eliminated.
Hormuz Closure Has Choked Global Supply
The Strait of Hormuz has been effectively closed since the war began on 28 February. The waterway normally handles roughly a fifth of the world’s seaborne oil and gas shipments. Tehran threatened to strike any vessels attempting to transit the strait in response to US-Israeli strikes.
Energy markets have swung violently throughout the conflict. Brent had recovered above $100 a barrel after a ceasefire took effect in early April, but that truce has remained fragile, with sporadic exchanges of fire continuing.
Trump extended the truce indefinitely on 21 April, giving Iran time to submit a unified peace position. That submission has now been rejected.
Energy Giants Reap Windfall Profits
The supply crunch has dramatically boosted revenues across the energy sector. Saudi Aramco said Sunday that first-quarter earnings jumped more than 25% year-on-year, with its cross-country pipeline absorbing demand that would normally move through Hormuz.
Amin Nasser, Aramco’s chief executive, described the pipeline as a critical supply artery during the crisis. BP separately reported that its first-quarter profits more than doubled, while Shell also posted a sharp earnings increase last week.
With negotiations now visibly stalled, markets face the prospect of an extended closure of the world’s most consequential energy corridor. Any further escalation could push Brent well above current levels.
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