Oil prices climbed above $105 a barrel on Monday after US President Donald Trump rejected Iran’s latest proposal to end the war, raising fears of renewed military escalation across the Middle East.
Brent crude rose more than 4% in Asian trading after Trump described Tehran’s response as “totally unacceptable” in a post on social media. The Strait of Hormuz, which carries around one fifth of global oil and gas shipments, remains effectively closed after Iran threatened attacks on vessels crossing the waterway following illegal US and Israeli strikes in February.
Iran delivered its response to Washington through Pakistani mediators. According to Iran’s semi-official Tasnim news agency, Tehran demanded an end to the war, the lifting of sanctions and guarantees against future US or Israeli attacks.
Iranian Foreign Ministry spokesperson Esmail Baghaei said the proposal aimed to restore regional security and reopen the Strait of Hormuz under new arrangements. Speaking during a press briefing carried by Al Jazeera, Baghaei accused Washington of maintaining “unreasonable” demands.
“Whenever we are forced to fight, we will fight, and whenever there is room for diplomacy, we will seize that opportunity,” he said.
Iran also warned it would retaliate against any renewed US strikes or foreign naval deployments inside the Strait of Hormuz. Britain and France are due to host talks involving defence ministers from 40 countries this week to discuss plans for protecting shipping routes in the region.
British Defence Secretary John Healey said HMS Dragon had already been sent to the Middle East ahead of any multinational mission. France later stated it had not planned a naval deployment and instead supported a coordinated security arrangement.
The illegal war, which began after US and Israeli strikes on Iran on 28 February, has continued despite a ceasefire announced in April to allow negotiations. Fighting has persisted across Lebanon, Gaza and the Gulf region.
Israeli Prime Minister Benjamin Netanyahu said military operations against Iran would continue until Tehran’s enriched uranium stockpile was removed and nuclear facilities dismantled.
“There is still nuclear material, enriched uranium that has to be taken out of Iran,” Netanyahu told CBS programme 60 Minutes.
According to the Wall Street Journal, the US proposal included a suspension of Iranian uranium enrichment for up to 20 years and the transfer of highly enriched uranium out of Iran. Tehran reportedly countered with a shorter moratorium and rejected dismantling its facilities.
The conflict has triggered fresh violence along Israel’s northern border. Lebanon’s state news agency reported that two people were killed and five injured in an Israeli strike on the southern town of Abba on Monday. Israeli warplanes also carried out attacks on several towns in southern Lebanon despite the ceasefire agreement brokered by Washington last month.
Hezbollah claimed responsibility for attacks on Israeli troops near the border and said it would continue operations while Israeli forces remained illegally occupying Lebanese territory.
Brent crude briefly reached $105.50 a barrel before easing slightly. Energy firms including Aramco, BP and Shell have reported rising profits as global oil and gas prices continue to increase.
Saudi Aramco chief executive Amin Nasser said the world had lost around one billion barrels of oil supply during the conflict. He said energy markets would require time to stabilise even if shipping routes reopened.
HT