Washington, United States. President Donald Trump rejected Iran’s response to a U.S. peace proposal, pushing oil prices higher amid concerns the conflict will continue and shipping through the Strait of Hormuz will remain largely paralyzed.
Iran’s response and demands
Days after the United States offered a proposal aimed at reopening negotiations, Iran on Sunday issued a response focused on ending the war on all fronts, especially Lebanon, where U.S. ally Israel is fighting Iran-backed Hezbollah militants. Iranian state TV said Tehran demanded compensation for war damage and emphasized Iranian sovereignty over the Strait of Hormuz.
Iran also called on the United States to end its naval blockade, guarantee no further attacks, lift sanctions, and end a U.S. ban on Iranian oil sales, according to the semi-official Tasnim news agency.
Trump’s rejection and U.S. proposal framework
Trump dismissed Iran’s proposal on social media within hours. “I don’t like it — TOTALLY UNACCEPTABLE,” he wrote on Truth Social, without providing further detail.
The United States had proposed ending the fighting before beginning talks on more contentious issues, including Iran’s nuclear program.
Oil market reaction and Strait of Hormuz disruption
Oil prices rose more than $4 a barrel on Monday following news of the continued stalemate, which has left the narrow Strait of Hormuz largely closed. Before the war began on February 28, the waterway carried one-fifth of global oil and liquefied natural gas flows and has become a central pressure point in the conflict.
“The oil market continues to trade like a geopolitical headline machine, with prices swinging sharply based on every comment, rejection, or warning coming from Washington and Tehran,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
Shipping update
Three tankers have transited the Strait of Hormuz in recent days.
How do you expect the continued stalemate to affect oil prices in the coming weeks?