OIL PRICES JUMP SHARPLY AFTER TRUMP DISMISSES IRAN PEACE PROPOSAL

Oil prices rose more than 4% on Monday after US President Donald Trump rejected Iran’s response to a peace proposal aimed at ending the 10-week conflict in the Middle East. The development has heightened fears that the war will continue, keeping the Strait of Hormuz largely closed and disrupting global oil supplies.

International benchmark Brent crude climbed as high as $105.50 per barrel in early Asian trading before easing slightly to around $103–$104. US West Texas Intermediate also rose by more than 3%, crossing the $98–$99 mark. The jump reflects growing concerns over prolonged instability in a region that supplies a significant portion of the world’s oil.

Trump described Iran’s counter-proposal as “totally unacceptable” in a post on his Truth Social platform. He had earlier put forward terms that included reopening the Strait of Hormuz to international shipping and limiting Iran’s nuclear activities. Iran’s response, delivered through intermediaries, was seen as falling short of these demands.

The Strait of Hormuz, a narrow waterway between the Persian Gulf and the Arabian Sea, normally carries about one-fifth of global oil and liquefied natural gas shipments. Its effective closure since the conflict began has tightened supplies and pushed prices higher in recent weeks.

For many African countries that import most of their fuel, the latest price surge could mean higher costs at the pump in the coming days and weeks. Nations like Kenya, Nigeria’s neighbours, South Africa, and Ethiopia, which rely heavily on imported petroleum products, may face increased transport and food prices. This adds pressure on households already struggling with living costs.

Analysts say the market remains nervous because a quick resolution now looks unlikely. Both sides have shown little flexibility, and shipping companies continue to avoid the area, raising insurance costs and forcing longer routes around Africa.

This development comes as global energy markets watch the situation closely. While some traders hope for renewed talks, others are preparing for extended volatility. For ordinary people across Africa, sustained high oil prices often translate into more expensive everyday goods and reduced economic activity.

The coming days will be critical as diplomats try to find a way forward. Until then, the uncertainty is likely to keep energy prices elevated.