Oil Prices Surge after Iran Rejects U.S. Peace Proposal
Oil prices surged in the global commodity market on Thursday as reciprocal attacks between the US, Israel, and Iran continue, despite reports that Washington wants to avoid a prolonged war.
Iran “responded negatively” to the U.S. proposal, state media reported, citing an unnamed senior political-security official who spoke of a counterproposal that included a complete halt to “aggression and assassinations” and recognition of Iran’s sovereignty over the Strait of Hormuz.
International benchmark Brent crude futures traded at $99.65 per barrel, up around 2.4% from the previous close of $97.26. US benchmark West Texas Intermediate (WTI) rose about 2.9% to $92.94 per barrel, compared with $90.32 in the previous session.
The market reaction comes despite US President Donald Trump’s earlier remarks that a five-day pause in attacks on Iran’s energy infrastructure had been declared. However, the continued deployment of US troops to the region keeps the risk of broader escalation on the table.
Earlier in the day, US Central Command (CENTCOM) released a video message by CENTCOM Commander Admiral Brad Cooper on its X account regarding the latest situation in the attacks against Iran. Cooper said CENTCOM hit more than 10,000 Iranian military targets.
“If you combine what we’ve accomplished with the success of our Israeli ally, together we have struck thousands more, clearly demonstrating that we’re stronger together,” Cooper said.
The White House said Wednesday that Trump favours a peaceful resolution with Iran but is prepared to escalate sharply if Tehran fails to accept the “reality of the current moment.”
Washington has delayed planned strikes on Iranian energy assets following “productive conversations” over the past three days, spokesperson Karoline Leavitt told reporters. Iran has repeatedly denied any conversations.
Meanwhile, Iranian missile attacks early Thursday targeting Israel triggered air raid sirens across central areas, including Jerusalem, and caused damage and injuries, according to Israeli media.
Although the conflict has so far remained relatively contained, it continues to feed into price volatility.
The war with Iran “is a catastrophe for the world’s economies,” Germany’s defense minister said.
“The impact is absolutely evident, already now after a little more than two weeks,” Defence Minister Boris Pistorius told reporters during a visit to Australia, where he made it clear that Germany did not want to get involved in the war.
“As the European partners, and Germany as well, highlighted from the beginning on: We have not been consulted before. Nobody asked us about it before. It’s not our war,” he said.
“And therefore we don’t want to get sucked into that war, to make it crystal clear,” Pistorius said.
On the supply-demand side, US data offered mixed signals. Rising US crude inventories added to demand concerns, putting some pressure on prices. At the same time, a slight drop in daily production helped limit the downside.
US commercial crude oil inventories increased by 1.5% in the week ending March 20, according to the Energy Information Administration (EIA).
Inventories rose by 6.9 million barrels to around 456.2 million barrels. Market expectations had predicted a decrease of 1.3 million barrels.
EIA data showed that US crude oil production fell by 11,000 barrels per day (bpd) to approximately 13.6 million bpd last week. Iran Rejects Trump’s 15-Point Peace Proposal, Makes Demands
