Trump rejects Iran peace terms as oil prices surge

US President Donald Trump has rejected Iran’s latest peace terms aimed at ending the escalating Middle East conflict, raising fears of renewed hostilities and triggering a sharp rise in global oil prices.

Mr Trump announced his position on Monday through his Truth Social platform after Tehran reportedly responded to Washington’s latest diplomatic proposal.

“I have just read the response from Iran’s so-called ‘Representatives.’ I don’t like it — TOTALLY UNACCEPTABLE!” Mr Trump wrote.

Oil prices jump amid tensions

The breakdown in negotiations unsettled global energy markets, with Brent crude rising by 4.65 percent to nearly $100 per barrel during early Asian trading.

US benchmark oil, West Texas Intermediate, also climbed more than four percent as concerns intensified over possible disruptions in the Strait of Hormuz, a key route for global oil shipments.

Iran has imposed partial restrictions on maritime traffic in the strait amid growing military tensions with the United States and its allies.

Iran maintains defiant position

Iranian President Masoud Pezeshkian insisted Tehran would not surrender under pressure despite ongoing diplomatic engagements.

“We will never bow down to the enemy,” Mr Pezeshkian said in a statement posted on X.

According to Iranian state media, Tehran’s counter-proposal focused on ending military operations across the region, particularly in Lebanon, while also seeking guarantees over shipping security.

Reports indicate Iran proposed transferring part of its enriched uranium stockpile to a third country under specific conditions tied to future negotiations.

Netanyahu insists conflict not over

Israeli Prime Minister Benjamin Netanyahu also signalled that the conflict would continue until Iran’s nuclear infrastructure is dismantled.

“It’s not over… there are still enrichment sites that have to be dismantled,” Mr Netanyahu said during an interview with CBS.

Israel and the United States launched coordinated strikes against Iranian targets on 28 February 2026, escalating regional tensions and intensifying global security concerns.

Strait of Hormuz crisis deepens

Attention has increasingly shifted to the Strait of Hormuz, where Iran has reportedly tightened controls and introduced toll mechanisms for ships passing through the strategic corridor.

US officials warned that allowing Tehran to dominate the route would be unacceptable, while the US Navy has increased operations around Iranian ports.

Meanwhile, Britain and France are preparing security initiatives aimed at protecting maritime trade routes after any future peace settlement.

French President Emmanuel Macron clarified that Paris was considering a coordinated security mission rather than direct military confrontation.

Fresh Drone attacks raise alarm

Despite diplomatic efforts, regional instability intensified on Sunday following reports of drone attacks across the Gulf region.

The United Arab Emirates said it intercepted drones allegedly launched from Iran, while Kuwait and Qatar also reported aerial security incidents.

Iranian lawmaker Ebrahim Rezaei warned that Tehran’s “restraint is over,” threatening decisive retaliation against any attacks on Iranian vessels.

The escalating standoff has heightened fears of broader instability across the Middle East, with energy markets, shipping routes, and diplomatic relations increasingly under pressure.

Analysts warn that prolonged tensions around the Strait of Hormuz could significantly impact global oil supply and international trade if negotiations collapse entirely.