Oil prices surge 4% after US-Iran peace hopes fade

Oil prices witnessed a significant jump in international market as the United States and Iran failed to reach a peace agreement while the energy supplies may continue to face disruption due to restrictions at the Strait of Hormuz. West Texas Intermediate (WTI) crude reached $99.98 per barrel, up $4.56 or 4.78% from previous levels, while Brent crude climbed to $105.50, rising $4.21, an increase of 4.16%, according to a portal that monitors oil prices. Middle Eastern Murban crude also moved higher, trading at $98.82 per barrel, marking a $2.16 gain, or 2.23%. Meanwhile, natural gas prices experienced upward momentum, reaching $2.829 per million British thermal units (MMBtu), an increase of 7.2 cents, or 2.61%. Gasoline followed suit, with prices rising $0.092 to $3.619 per gallon, reflecting a 2.61% increase. The oil and energy prices moved up after US President Donald Trump rejected Iran’s most recent reply to Washington’s peace proposal, describing it as “totally unacceptable” amid escalating Middle East tensions. Posting on his social media platform Truth Social, Trump said he had reviewed the Iranian response and strongly disagreed with it. “I have just read the response from Iran’s so-called ‘representatives’. I don’t like it — totally unacceptable,” he wrote. The statement comes as the US awaits further diplomatic progress with Iran following weeks of heightened military tensions and fragile ceasefire efforts in the Gulf region. Iran had submitted its reply to a US-backed proposal aimed at ending the regional conflict, with mediation efforts involving Pakistan playing a key role. Iranian state media outlet IRNA reported that the current phase of talks would mainly focus on halting the ongoing hostilities.