Oil prices climbed after U.S. President Donald Trump described Iran’s reply to American proposals aimed at ending the conflict as “totally unacceptable.”
Through its intermediary Pakistan, which has been facilitating communication between both sides, Iran submitted a response calling for an immediate halt to hostilities and assurances that the United States and Israel would refrain from further strikes, according to Iran’s semi-official Tasnim News Agency.
Global benchmark Brent crude jumped by 4.1% to $105.50 per barrel in Asian trading before easing slightly later in the session.
The crucial Strait of Hormuz has reportedly been largely closed since shortly after fighting began on February 28, significantly disrupting international oil and gas flows.
Reacting to Iran’s position, Trump wrote on social media: “I have just read the response from Iran’s so-called ‘Representatives.’ I don’t like it – TOTALLY UNACCEPTABLE.”
According to reports from U.S. media outlet Axios, Washington’s proposals had included restoring free navigation through the Strait of Hormuz and halting Iran’s uranium enrichment activities.
Israeli Prime Minister Benjamin Netanyahu has also stated that the conflict will not end until Iran’s enriched uranium stockpiles are completely removed.
Although a ceasefire announced in early April was intended to allow diplomatic negotiations, it has largely held despite sporadic exchanges of fire.
On April 21, Trump extended the truce indefinitely to provide Iran additional time to present what he described as a “unified proposal.”
Since the start of the conflict, energy markets have experienced sharp volatility, with Brent crude moving back above the $100 mark following the April 8 ceasefire.
The Strait of Hormuz, which normally carries around one-fifth of global oil and gas shipments, has been effectively shut after Iran threatened to target vessels in response to US-Israeli military action.
Major energy firms have benefited from the surge in prices, with profits rising alongside higher global oil and gas benchmarks.
Saudi Aramco reported on Sunday that its first-quarter earnings increased by more than 25% compared to the same period in 2025.
The company’s CEO, Amin Nasser, said its cross-country pipeline had become a “critical supply artery,” helping shield exports from disruptions linked to the conflict.
Meanwhile, BP recently reported that its quarterly profits more than doubled, and Shell also posted stronger earnings last week.