Global oil prices climbed sharply after US President Donald Trump rejected Iran’s latest response to Washington’s proposals aimed at ending the ongoing conflict in the Middle East.
According to Iranian media reports, Tehran delivered its response through Pakistan, which has continued to play a mediating role between the United States and Iran during the crisis. Iran’s semi-official Tasnim news agency stated that Tehran demanded an immediate halt to the war and firm guarantees that no further joint US-Israeli military strikes would be launched against Iranian territory.
International benchmark Brent crude surged by more than 4%, briefly reaching $105.94 (£77.74) per barrel before easing slightly to around $103 later in trading. The renewed spike reflected growing fears that diplomatic efforts could collapse and prolong disruptions to global energy supplies.
The crisis surrounding the strategically vital Strait of Hormuz has continued to shake international markets. The key shipping lane has effectively remained closed since shortly after the war began on 28 February, severely limiting the movement of oil and gas shipments through one of the world’s most critical energy corridors.
Responding to Tehran’s conditions, Trump wrote on social media that he had reviewed Iran’s message and dismissed it outright. “I have just read the response from Iran’s so-called ‘Representatives.’ I don’t like it – TOTALLY UNACCEPTABLE,” the US president stated.
Reports from US outlet Axios indicated that Washington’s proposed framework included the restoration of free navigation through the Strait of Hormuz as well as a suspension of Iranian nuclear enrichment activities.
Meanwhile, Israeli Prime Minister Benjamin Netanyahu declared that Israel’s military campaign against Iran would not conclude until Tehran’s enriched uranium stockpiles were “taken out,” signaling that tensions remain extremely high despite ongoing diplomatic contacts.
A ceasefire introduced in early April to create space for negotiations has largely held, although sporadic exchanges of fire have continued to occur between the opposing sides. Despite the temporary truce, oil markets have remained highly volatile, with Brent crude once again climbing above $100 a barrel after the ceasefire officially took effect on 8 April.
The Strait of Hormuz, which normally handles nearly one-fifth of the world’s oil and gas exports, has effectively been shut down after Tehran warned it could target vessels attempting to cross the waterway in retaliation for US-Israeli airstrikes. The disruption has triggered widespread concern among governments, shipping firms, and energy markets worldwide.
Major international energy companies have benefited from soaring oil and gas prices as the conflict has tightened supplies and intensified fears of a prolonged energy shock.
Saudi energy giant Saudi Aramco announced on Sunday that its profits for the first quarter of the year had risen by more than 25% compared with the same period in 2025.
Aramco chief executive Amin Nasser said the company’s vast cross-country pipeline network had proven to be a “critical supply artery,” allowing Saudi exports to continue flowing despite major disruptions to maritime shipping routes caused by the Iran conflict.
Other global energy firms have also reported massive earnings increases. Last month, BP revealed that its first-quarter profits had more than doubled, while Shell announced a substantial jump in earnings last week as elevated crude prices boosted revenues across the sector.
Speaking to investors on Monday, Nasser warned that the global energy shock triggered by the conflict could continue well into 2027, even if the Strait of Hormuz is reopened in the near future.
“If the Strait of Hormuz opens today, it will still take months for the market to rebalance, and if its opening is delayed by a few more weeks, then normalisation will last into 2027,” he said.
Nasser further stated that the global oil market had experienced an “unprecedented supply loss of about a billion barrels of oil” since the conflict erupted earlier this year.
Fresh data also highlighted the scale of the supply disruption. Oil production by the Organization of the Petroleum Exporting Countries declined sharply in April, falling by 830,000 barrels per day from the previous month to 20.04 million barrels per day, underscoring the severe impact of the regional conflict on global crude supplies.
