Global Oil Prices Surge as Trump Rejects Iran’s Peace Proposal; Brent Hits $105

SINGAPORE/WASHINGTON – International energy markets are on edge once again as global oil benchmark Brent crude jumped over 4% to reach $105.50 per barrel. The sudden spike follows a blunt social media post from U.S. President Donald Trump, who labeled Iran’s latest diplomatic response to end the ongoing conflict as “totally unacceptable.”

The Diplomatic Standoff via Pakistan

In a unique diplomatic turn, Tehran delivered its terms through Pakistan, which has been acting as a central mediator in the conflict. According to the Tasnim news agency, Iran’s proposal demanded an immediate cessation of hostilities and ironclad guarantees against future U.S. or Israeli strikes.

However, President Trump’s response was swift and dismissive. “I have just read the response from Iran’s so-called ‘Representatives.’ I don’t like it,” Trump posted, signaling a potential escalation in the geopolitical tug-of-war.

The Strait of Hormuz Crisis

The primary driver behind the price volatility remains the closure of the Strait of Hormuz. This vital maritime artery, responsible for the passage of roughly 20% of the world’s oil and gas supplies, has been effectively paralyzed since February 28. Tehran has maintained a blockade, threatening any vessel attempting to navigate the passage in retaliation for strikes on its soil.

While a temporary ceasefire initiated in early April provided a brief moment of stability, the lack of a formal peace agreement has kept Brent crude consistently above the $100 mark.

Energy Giants Reap Record Profits

As consumers worldwide face rising fuel costs, global energy titans are reporting unprecedented financial gains.

• Saudi Aramco: Reported a 25% profit surge in Q1 2026, crediting its cross-country pipeline for bypassing the Hormuz shipping disruptions.

• BP & Shell: Both companies have seen earnings more than double compared to the previous year, fueled by the global supply squeeze.

The Nuclear Deadlock

The path to peace remains complicated by Israeli Prime Minister Benjamin Netanyahu’s firm stance. Netanyahu recently reiterated that the conflict would not conclude until Iran’s enriched uranium stockpiles are completely neutralized. Meanwhile, Washington continues to demand the total suspension of Iranian nuclear enrichment and the restoration of free transit through the Strait.

With negotiations at a standstill and energy supplies constrained, analysts warn that the global economy should prepare for a prolonged period of high fuel prices and market uncertainty.