Middle East Tensions, Stalling Peace Efforts Deepen Oil Market Crisis

Oil prices climbed sharply in early Asian trading on Monday, with Brent crude rising 3.8% to $105.20 per barrel and US crude up 4% to $99.30, reflecting escalating concerns over global energy stability. The surge follows stalled diplomatic efforts to end the Iran-US-backed coalition conflict, which has kept the Strait of Hormuz—a critical route for nearly 20% of global oil and gas—effectively closed since February 28. Tehran had threatened vessels linked to US and Israeli operations, disrupting supply chains and tightening markets. Iran’s latest peace proposal, submitted through Pakistan, called for an immediate ceasefire and guarantees against further strikes by US and Israeli forces. However, US President Donald Trump rejected the response as “totally unacceptable” in a social media post, signaling a continued deadlock. Earlier, Washington had reportedly demanded the reopening of free navigation through the Strait of Hormuz and an end to Iran’s uranium enrichment activities, according to US media. Israeli Prime Minister Benjamin Netanyahu reiterated that the conflict would not end until Iran’s enriched uranium stockpiles were fully dismantled, adding pressure to fragile negotiations. A temporary ceasefire introduced in early April and later extended indefinitely on April 21 failed to halt sporadic clashes, leaving markets volatile. Brent crude has repeatedly crossed the $100 mark since early April, benefiting energy companies like Saudi Aramco, which reported a 25% increase in quarterly earnings. The ongoing stalemate has heightened global energy security concerns, with markets remaining sensitive to political statements and military developments. The Strait of Hormuz’s closure and rising tensions continue to disrupt supply routes, pushing prices upward and reinforcing economic pressures across the energy sector.