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Fez – Oil prices surged in early Asian trading on Monday as diplomatic efforts to end the war between Iran and the U.S-backed coalition showed no progress, deepening concerns over global energy stability.
Brent crude rose by 3.8% to $105.20 a barrel, while US crude gained 4%, reaching $99.30.
The increase reflects renewed uncertainty in markets already shaken by weeks of conflict and disrupted supply routes.
The Strait of Hormuz, a vital passage through which nearly a fifth of global oil and gas normally flows, is the center of the crisis.
The waterway has remained effectively closed since the conflict began on February 28, after threats from Tehran targeting vessels linked to US and Israeli operations.
The disruption has tightened global supply chains and pushed prices upward.
Tensions escalated further after US President Donald Trump rejected Iran’s latest response to peace proposals.
Iran had submitted its position through Pakistan, acting as an intermediary, calling for an immediate end to hostilities and guarantees against further strikes by US and Israeli forces.
Trump, however, described the response as “totally unacceptable” in a post on social media, signaling a continued deadlock.
The diplomatic exchange comes after Washington reportedly proposed conditions that included reopening free navigation through the Strait of Hormuz and halting Iran’s uranium enrichment activities, according to US media reports.
On the regional front, Israeli Prime Minister Benjamin Netanyahu stated that the conflict will not be considered over until Iran’s enriched uranium stockpiles are fully dismantled, adding further pressure to already fragile negotiations.
Although a ceasefire introduced in early April temporarily reduced large-scale hostilities, sporadic clashes have continued.
The truce was later extended indefinitely on 21 April in an attempt to allow space for renewed diplomatic engagement, but progress has remained limited.
Energy markets have reacted strongly throughout the conflict, with Brent crude repeatedly crossing the $100 threshold since early April.
The volatility has also boosted profits across the global energy sector.
Saudi Arabia’s national oil company, Saudi Aramco, reported a more than 25% increase in quarterly earnings compared to the same period last year, benefiting from elevated oil and gas prices.
As the conflict continues without a clear path to resolution, markets remain highly sensitive to every political statement and military development, with energy security once again becoming a central global concern.
