Global oil prices experienced a significant jump following President Donald Trump’s outright rejection of Iran’s proposal aimed at de-escalating the ongoing conflict. Trump declared the response from Iran’s representatives as “totally unacceptable,” signaling a continued impasse in diplomatic efforts.

Tehran, through mediator Pakistan, had conveyed its terms for ending the hostilities. These demands reportedly included an immediate cessation of conflict and assurances against further military actions by the United States and Israel. In response, President Trump took to social media to voice his dissatisfaction, stating that he found the proposal unacceptable. Meanwhile, US terms for a resolution, as reported, involved the reopening of the critical Strait of Hormuz waterway and the halt of Iran’s nuclear enrichment activities. Israeli Prime Minister Benjamin Netanyahu also reiterated his stance, emphasizing that the conflict would not conclude until Iran’s enriched uranium stockpiles are neutralized.

The geopolitical tensions have directly impacted global energy markets. Brent crude, the international benchmark, saw a notable increase of 4.1% to $105.50 per barrel in Asian trading. Similarly, US-traded crude futures climbed by 4.4% to $99.80 per barrel. These price hikes are exacerbated by the ongoing closure of the Strait of Hormuz, a vital shipping lane through which approximately one-fifth of the world’s oil and gas typically transits. The waterway has been largely inaccessible since the conflict’s inception, significantly disrupting the flow of global energy supplies.

Major energy corporations have reported substantial profit increases amidst the volatile market conditions. Saudi Aramco announced a more than 25% surge in earnings for the first quarter of the year compared to the previous year, attributing its resilience partly to its cross-country pipeline bypassing shipping disruptions. Other energy giants, including BP and Shell, have also published reports indicating doubled or significantly increased profits for the same period, underscoring the financial implications of the sustained high energy prices driven by the conflict.