Oil prices have risen sharply after President Donald Trump dismissed Iran’s response to US proposals to end the war as “totally unacceptable.”
International oil benchmark Brent rose by 4.1 per cent to $105.50 a barrel in Asian trade, while US-traded crude increased by 4.4 per cent to $99.80.
The key Strait of Hormuz waterway has been effectively shut since shortly after the war started on February 28, severely disrupting global supplies of oil and gas.
Tehran sent its response via Pakistan, which has served as a mediator between the two sides, calling for an immediate end to the conflict and guarantees of no further US-Israeli attacks on Iran, according to Iran’s semi-official Tasnim news agency.
Responding to Tehran’s terms, Trump posted on social media: “I have just read the response from Iran’s so-called ‘Representatives.’ I don’t like it – TOTALLY UNACCEPTABLE.”
Washington’s terms had included restoration of free transit through the Strait of Hormuz and the suspension of Iranian nuclear enrichment, according to US news outlet Axios.
Israeli Prime Minister Benjamin Netanyahu also said the war with Iran will not be over until its enriched uranium stockpiles are “taken out.”
A ceasefire announced in early April to allow time for peace talks has been mostly observed, despite occasional exchanges of fire. On April 21, Trump extended the truce indefinitely to give Iran time to present a “unified proposal.”
Energy prices have swung wildly since the start of the conflict, while Brent crude has risen back above $100 a barrel since the ceasefire came into effect on April 8.
Major energy companies have seen their profits jump as prices of oil and gas have soared on global markets. On Sunday, Saudi Arabian energy giant Aramco said its earnings had jumped by more than 25 per cent in the first three months of the year compared to the same period in 2025.
