Global oil prices climbed sharply after US President Donald Trump described Iran’s response to American proposals aimed at ending the ongoing conflict as “totally unacceptable,” intensifying concerns over prolonged instability in West Asia.
International benchmark Brent crude rose 4.1% to USD 105.50 per barrel in Asian trading, while US crude gained 4.4% to reach USD 99.80 per barrel amid fears of disruptions to global energy supplies.
According to Tasnim News Agency, Tehran conveyed its response through Pakistan, which has reportedly been acting as a mediator between the two sides. Iran is said to have demanded an immediate end to the conflict and assurances against further US-Israeli attacks.
Reacting to the proposal, Trump wrote on his social media platform that he found the terms “TOTALLY UNACCEPTABLE.”
Reports said Washington’s proposal included restoring free navigation through the Strait of Hormuz and suspending Iran’s uranium enrichment programme.
Meanwhile, Israeli Prime Minister Benjamin Netanyahu said the conflict would continue until Iran’s enriched uranium stockpiles are “taken out.”
The Strait of Hormuz, through which nearly one-fifth of the world’s oil and gas shipments pass, has remained effectively shut since tensions escalated on Feb. 28, severely affecting global energy transportation and pushing prices higher.
Although a ceasefire announced in early April has largely held, tensions remain elevated despite limited exchanges of fire. Trump had extended the truce indefinitely on April 21 to allow further negotiations with Tehran.
The prolonged uncertainty has triggered volatility in energy markets, with Brent crude remaining above USD 100 per barrel since the ceasefire took effect.
Major energy companies have benefited from the surge in prices. Saudi Aramco reported a more than 25% rise in first-quarter earnings compared with the same period last year. Company chief Amin Nasser said the firm’s cross-country pipeline network had helped avoid shipping disruptions linked to the conflict.
Energy giants BP and Shell also reported significant increases in quarterly profits amid elevated oil and gas prices.
