Oil Surges to $108 as Iran Rejects US Peace Plan as 'One-Sided and Unfair'

 

Crude oil prices climbed sharply on Thursday, with Brent crude hitting $108 per barrel, after Iran dismissed a U.S.-proposed 15-point plan to end the ongoing war in the Middle East as "one-sided, unfair, and skewed" in favor of American and Israeli interests.

The surge marks a reversal from earlier in the week, when prices had dipped on hopes of de-escalation following reports of indirect U.S.-Iran communications. However, Tehran's firm rejection renewed concerns over prolonged disruptions to global energy supplies, particularly through the Strait of Hormuz, which Iran has effectively blocked or threatened to toll as part of its wartime strategy.

A senior Iranian official told Reuters that the U.S. proposal—conveyed via Pakistan—lacks the "minimum requirements for success" and primarily serves Washington and Tel Aviv. The plan reportedly demands that Iran dismantle its nuclear program, curb its missile capabilities, abandon support for regional proxies, and relinquish effective control over the Strait of Hormuz. Iran, in response, has reiterated its "natural and legal right" to sovereignty over the strategic waterway, a key chokepoint for much of the world's oil trade. 

Despite the criticism, Iranian officials indicated they have not entirely closed the door on diplomacy. The proposal was reviewed in detail by senior officials and a representative of Iran's Supreme Leader. Tehran stressed that any realistic path forward would require "realism" from Washington, including guarantees against future attacks and compensation for damages.

U.S. President Donald Trump, speaking during a cabinet meeting and on social media, mixed threats with calls for negotiation. He described Iran as "begging" for a deal while being "beat to shit," paused attacks on Iranian energy infrastructure for another 10 days (until April 6), and claimed talks were "going very well." Trump denied being desperate for an agreement, warning that Iran must "get serious soon" or face irreversible consequences, and even floated the idea of U.S. control over Iranian oil fields as an option, drawing parallels to Venezuela.

Trump has also pushed back against Iranian preferences for negotiators, with Tehran reportedly rejecting figures like Steve Witkoff and Jared Kushner in favor of Vice President J.D. Vance, viewed as more skeptical of prolonged U.S. military involvement in the region.

The nearly four-week-old conflict, involving U.S. and Israeli strikes on Iran alongside Iranian retaliatory missile attacks and disruptions in the Gulf, has driven oil prices up by nearly 40% overall. It has also caused significant ripple effects: a spike in liquefied natural gas shipping costs, rising fertilizer prices, and pressure on global plastics, technology, retail, and tourism sectors.

In Nigeria, the fallout has been felt at the pumps. Petrol prices have risen sharply from pre-crisis levels of around N860–N880 per litre to N1,261 (NNPC) and N1,371 (major marketers) per litre in recent days.

Market analysts note that while ceasefire hopes briefly eased prices earlier in the week, persistent uncertainty over the Strait of Hormuz and supply risks continue to support higher crude levels. Brent crude had earlier traded as high as $108 amid the latest tensions, with WTI also gaining ground.

As both sides engage in a war of words and indirect messaging, the coming days will be critical in determining whether diplomacy gains traction or if the conflict escalates further, potentially pushing energy prices even higher.