Oil Prices surge as Iran–US tensions escalate and Hormuz strait disruptions deepen
Global oil prices rose sharply in early Monday trading in Asia after former U.S. President Donald Trump described Iran’s response to U.S. proposals aimed at ending the ongoing conflict as “totally unacceptable.”
Iran reportedly sent its response through Pakistan, which has been acting as a mediator between the two sides. Tehran called for an immediate end to hostilities and demanded guarantees against further U.S. and Israeli attacks, according to Iran’s semi-official Tasnim news agency.
Following the developments, international oil benchmark Brent crude climbed by 4.1% to $105.50 per barrel, while U.S. West Texas Intermediate (WTI) rose 4.4% to $99.80.
Tensions have continued to disrupt global energy flows, with the Strait of Hormuz—a critical shipping route for global oil and gas—remaining effectively closed since the conflict began on February 28, severely affecting supply chains worldwide.
Reacting to Iran’s conditions, Trump wrote on social media: “I have just read the response from Iran’s so-called ‘Representatives.’ I don’t like it – TOTALLY UNACCEPTABLE.”
Reports indicate that Washington’s proposals included restoring free navigation through the Strait of Hormuz and halting Iran’s nuclear enrichment activities, according to U.S. media outlet Axios.
Israeli Prime Minister Benjamin Netanyahu has also stated that the conflict will not end until Iran’s enriched uranium stockpiles are fully “taken out.”
Although a ceasefire announced in early April has largely held, there have been occasional exchanges of fire. On April 21, Trump extended the truce indefinitely to allow space for renewed negotiations and what he described as a “unified proposal” from Iran.
Oil markets have remained highly volatile since the start of the conflict, with Brent crude returning above $100 per barrel after the ceasefire took effect on April 8.
The Strait of Hormuz, through which roughly one-fifth of global oil and gas shipments pass, has remained largely closed following Iranian threats to target vessels in response to U.S. and Israeli strikes.
Meanwhile, major energy companies have reported significant profit increases amid soaring global energy prices.
Saudi Aramco said its earnings rose by more than 25% in the first quarter of the year compared to the same period in 2025, crediting its pipeline infrastructure for maintaining stable supply flows despite regional disruptions.
Similarly, BP reported more than a doubling of profits for the same period, while Shell also announced strong earnings driven by higher oil and gas prices.
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