U.S. President Donald Trump’s sharp dismissal of Iran’s latest ceasefire proposal has propelled oil prices higher, boosting fortunes for major energy firms as the Strait of Hormuz blockade continues to throttle global supplies.
Brent crude jumped 4.1% to $105.50 per barrel in early Asian trading on Monday, while West Texas Intermediate rose 4.4% to $99.80. The move came after Tehran relayed its terms via Pakistan, demanding an immediate halt to fighting and guarantees against further U.S.-Israeli strikes, according to the semi-official Tasnim news agency.
Trump hit back swiftly on social media. “I have just read the response from Iran’s so-called ‘Representatives.’ I don’t like it – TOTALLY UNACCEPTABLE,” he posted.
Washington’s earlier demands included restoring free passage through the strait and suspending Iran’s nuclear enrichment, sources told Axios. Israeli Prime Minister Benjamin Netanyahu insisted the war will not end until Tehran’s enriched uranium stockpiles are “taken out.”
The strait, a conduit for roughly 20% of the world’s seaborne oil, has been effectively closed since the conflict began on 28 February. Iran’s threats to target ships in retaliation for U.S.-Israeli attacks have disrupted supplies, reminiscent of its 2019 tanker incidents and slashing global flows by up to 5%, per recent Bloomberg and IEA analysis.
A ceasefire activated on 8 April has largely held despite skirmishes, with Trump extending it indefinitely on 21 April to allow a unified Iranian response. Yet energy markets have swung wildly, with Brent reclaiming $100 levels.
The volatility has delivered bumper profits. Saudi Aramco announced Sunday that first-quarter earnings surged over 25% from 2025, praising its domestic pipeline as a “proven, critical supply artery” that sidestepped Hormuz chaos, CEO Amin Nasser said. BP reported first-quarter profits more than doubled, while Shell’s earnings jumped last week.
ExxonMobil posted 18% growth, and OPEC+ plans Saudi hikes of 200,000 barrels per day to ease pressure. Analysts warn of $120 oil if the strait remains shut, potentially hiking UK petrol by 50p per litre.
Diplomatic efforts via Oman and Qatar continue, but Trump’s stance casts a shadow.