Trump Rejects Iran's Peace Proposal, Oil Prices Climb as Strait of Hormuz Remains Shut

International oil benchmark Brent crude rose by 3.8% to $105.20 a barrel on Monday, while US-traded crude increased by 4% to $99.30. This rise follows former US President Donald Trump's public rejection of Iran's latest peace terms, conveyed via Pakistan, which has served as a mediator.

Iran's semi-official Tasnim news agency reported that Tehran's proposal included demands for an immediate end to the conflict and guarantees against further US-Israeli attacks on Iranian territory. Trump responded on social media, stating, "I have just read the response from Iran's so-called 'Representatives.' I don't like it - TOTALLY UNACCEPTABLE."

Washington's conditions for peace, according to US news outlet Axios, had focused on restoring free transit through the Strait of Hormuz and suspending Iranian nuclear enrichment. Israeli Prime Minister Benjamin Netanyahu has also asserted that the conflict will persist until Iran's enriched uranium stockpiles are "taken out."

The Strait of Hormuz, a vital chokepoint for approximately a fifth of global oil and gas shipments, has been effectively closed since the conflict began on 28 February. This closure, stemming from Tehran's threats to target vessels in retaliation for US-Israeli strikes, has severely disrupted global energy flows. A ceasefire initiated in early April, intended to facilitate peace negotiations, has largely held despite intermittent exchanges of fire. Trump extended this truce indefinitely on 21 April to allow Iran to present a "unified proposal."

Major energy corporations have reported significant profit increases amidst the soaring global prices of oil and gas. Saudi Arabian energy giant Aramco announced a profit jump of over 25% for the first three months of the year, attributing its cross-country pipeline as a "critical supply artery" that mitigated disruptions caused by the Iran war. Similarly, BP's profits more than doubled in the first quarter, and Shell also reported a substantial increase in earnings.