Oil Prices Rise Following Trump's Rejection of Iran's Proposal
Oil prices increased during Monday morning trading in Asia after President Donald Trump declared Iran's response to US proposals aimed at ending the war as "totally unacceptable."
Iran communicated its response through Pakistan, which has acted as a mediator between the two parties. According to Iran's semi-official Tasnim news agency, Tehran called for an immediate cessation of hostilities and demanded guarantees against further US-Israeli attacks on Iran.
International benchmark Brent crude oil rose by 3.1%, reaching $104.50 (£76.88) per barrel, while US-traded crude oil increased by 3% to $98.40 per barrel.
Strait of Hormuz Closure Disrupts Global Oil Supply
The Strait of Hormuz, a critical maritime passage through which approximately one-fifth of global oil and gas shipments typically transit, has been effectively closed since shortly after the conflict began on 28 February. This closure has significantly disrupted global energy supplies.
In response to Tehran's conditions, President Trump posted on social media:
I have just read the response from Iran's so-called 'Representatives.' I don't like it - TOTALLY UNACCEPTABLE.
According to the US news outlet Axios, Washington's conditions included the restoration of free passage through the Strait of Hormuz and a suspension of Iranian nuclear enrichment activities.
Israeli Position and Ceasefire Developments
Israeli Prime Minister Benjamin Netanyahu stated that the conflict with Iran will not conclude until Iran's enriched uranium stockpiles are "taken out."
A ceasefire announced in early April to facilitate peace negotiations has largely been observed, despite occasional exchanges of fire.
On 21 April, President Trump extended the truce indefinitely to allow Iran additional time to present a "unified proposal."
Energy Market Volatility Amid Conflict
Energy prices have experienced significant volatility since the onset of the conflict. Brent crude oil prices have risen back above $100 per barrel since the ceasefire took effect on 8 April.
The Strait of Hormuz remains effectively closed after Tehran threatened to target vessels attempting to transit the waterway, in retaliation for US-Israeli strikes.
