(Washington) Oil prices rise as Trump rejects Iran’s response to peace offer

Oil prices surged on Sunday as Donald Trump sharply rejected Iran’s response to American proposals to end the war.

“I have just read the so-called ‘representatives’ of Iran’s response. I don’t like it – IT IS TOTALLY UNACCEPTABLE!” wrote the US president in a brief message on his Truth Social network on Sunday night.

Before the opening of the Asian markets, oil prices soared, with Brent crude gaining 3.29% to $104.62 per barrel on Sunday around 10:20 pm (EST). The situation of a quick reopening of the Strait of Hormuz, a key passage for a fifth of the world’s oil supply normally transited, appeared distant as Iran continues to block it since the hostilities began on February 28.

After over a month of ceasefire between the two opponents, hopes for a conflict resolution are uncertain as neither party has publicly revealed their proposals.

After days of waiting, Iran announced on Sunday that it responded to the American plan, but did not provide details. Iranian state media reported that Tehran’s response, conveyed through a Pakistani mediator, was “focused on ending the war […] on all fronts, especially in Lebanon, and ensuring maritime security.”

Strait reopening

According to the Wall Street Journal, Tehran’s proposal includes a gradual reopening of the Strait of Hormuz and a simultaneous lifting of the US naval blockade of Iranian ports.

The US and many countries suspect Tehran of seeking nuclear weapons through uranium enrichment, which it denies, claiming its right to civilian nuclear power.

“There are still nuclear materials – enriched uranium – that need to be removed from Iran,” said Israeli Prime Minister Benjamin Netanyahu on CBS.

He also expressed hopes for the fall of the Iranian regime, indicating it would weaken Iran’s allies in Yemen, Gaza, and Lebanon.

The war, which has resulted in thousands of deaths, mainly in Iran and Lebanon, “has achieved a lot but is not over,” he warned.

Drones in the Gulf

New attacks were reported in the Gulf on Sunday.

In Qatar, a cargo ship from Abu Dhabi was targeted by a drone in territorial waters before continuing its voyage, according to the Defense Ministry.

Iranian news agency Fars stated that the ship “flying the American flag and owned by the US,” without explicitly stating that Iran attacked it.

Other countries have been targeted by drones: Kuwait did not specify the source, but Abu Dhabi directly accused Tehran.

Since the start of the conflict by Israel and the US, Gulf monarchies allied with Washington were struck by Iranian attacks.

These incidents occurred two days after the US Navy targeted two Iranian tankers in the Gulf of Oman, a pathway to the Strait of Hormuz.

“Our restraint is over,” warned Ebrahim Rezaei, spokesman for Iran’s National Security Commission. “Any attack on our ships will provoke a strong and decisive Iranian response against the ships and bases of the US.”

“We will never bow down to the enemy, and if dialogue or negotiation is mentioned, it does not mean capitulation or retreat,” wrote President Massoud Pezeshkian on X.

France and the UK are working to assemble an international coalition to secure the Strait after a conflict resolution.

The defense ministers of both countries will hold a virtual meeting with around forty of their counterparts from ready countries to contribute to such a mission, as announced by London.

Tehran warned that any deployment would trigger a “decisive and immediate response” from the Iranian military, following Paris and London’s announcement of sending military vessels to position in the region.