Crude Oil Surges Above $105 After Trump Rejects Iran Peace Proposal

Global oil prices rose sharply on Monday after U.S. President Donald Trump rejected Iran’s latest peace proposal, escalating concerns over the future of the Middle East conflict and the potential impact on global crude supply flows.

Brent crude futures climbed by $4.04 to trade at $105.33 per barrel at the time of reporting, while U.S. West Texas Intermediate crude advanced by $4.43, representing a 4.64 per cent increase. The rally reversed losses recorded in the previous week when both oil benchmarks fell by about six per cent on expectations that negotiations between the United States and Iran could lead to a ceasefire and restore stability to oil shipping routes in the Gulf region.

Market sentiment shifted after Trump described Iran’s latest counterproposal as “totally unacceptable,” signalling renewed tensions between both countries and reducing optimism around a near-term diplomatic resolution.

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In a statement published on Truth Social, Trump criticised Iran’s response to the proposed peace arrangement and questioned Tehran’s commitment to ending the conflict.

“I have just read the response from Iran’s so-called representatives. I don’t like it — Totally Unacceptable,” Trump wrote.

The U.S. President also accused Iran of prolonging negotiations while engaging in actions hostile to the United States and its allies.

“For 47 years, the Iranians have been ‘tapping’ us along, keeping us waiting, killing our people with their roadside bombs,” he stated.

The remarks immediately triggered renewed fears within the energy market over possible disruptions to crude exports from the Middle East, particularly through the Strait of Hormuz, a strategic shipping route responsible for transporting a large share of the world’s oil supply.

Analysts said traders are increasingly worried that prolonged tensions between Washington and Tehran could disrupt supply chains and tighten global crude availability at a time when energy markets remain sensitive to geopolitical risks.

The previous decline in oil prices had been driven by speculation that diplomatic engagements could result in an end to the 10-week conflict and guarantee uninterrupted oil transit through the Strait of Hormuz. However, Trump’s latest comments have weakened those expectations and renewed uncertainty over the direction of negotiations.

Although full details of Iran’s counterproposal were not officially disclosed, reports indicated that Tehran offered limited concessions while resisting key U.S. demands regarding its nuclear programme.

According to a report by The Wall Street Journal, Iran proposed transferring part of its highly enriched uranium stockpile to a third country but rejected calls for the dismantling of its nuclear facilities. The report suggested that Tehran remains unwilling to fully abandon its nuclear infrastructure despite ongoing diplomatic pressure from the United States and Western allies.

However, Iran’s semi-official Tasnim News Agency disputed parts of the report and presented a different account of the proposal allegedly submitted to Washington.

The agency stated that Iran demanded an immediate end to hostilities, the release of frozen Iranian assets abroad, the removal of U.S. sanctions on Iranian oil exports, and an end to restrictions affecting the Gulf of Oman. It also claimed that Tehran sought greater authority over the Strait of Hormuz as part of the broader settlement framework.

The conflicting reports have further complicated the diplomatic process and raised doubts about the possibility of achieving a breakthrough in negotiations in the near term.

Energy market analysts noted that crude prices remain highly vulnerable to developments in the Middle East because of the region’s central role in global oil production and exports. Any escalation involving Iran could potentially threaten shipping operations and increase insurance and transportation costs for crude cargoes moving through the Gulf.

The Strait of Hormuz remains one of the most critical energy corridors globally, with millions of barrels of oil passing through the route daily. Any threat to its operations typically results in immediate reactions across global commodity markets.

Traders are also closely monitoring whether the United States could respond with a revised proposal or intensify pressure on Tehran through additional sanctions and diplomatic measures.

The latest spike in oil prices adds to broader concerns about global inflation and energy costs, particularly for oil-importing economies already facing pressure from elevated fuel prices and currency volatility.

Investors are expected to monitor further statements from both Washington and Tehran in the coming days as markets assess the likelihood of prolonged geopolitical instability and its implications for global energy supply.