Oil Surges to $108 as Iran Rejects US Plan, Tensions Deepen

Crude oil prices surged to $108.3 per barrel on Thursday, reflecting escalating tensions after Iran dismissed a U.S. proposal aimed at ending the ongoing conflict with Israel.

The 5.98 percent increase follows Tehran’s rejection of a 15-point peace framework presented by Donald Trump, which Iranian officials described as “one-sided, unfair and skewed” toward U.S. and Israeli interests.

The price jump reversed a brief dip earlier in the week, when markets reacted to Trump’s disclosure that Washington was exploring negotiations with Iran.

While Iran has not entirely ruled out diplomacy, officials told Reuters that there is currently no credible pathway for talks.

Central to the dispute is Iran’s insistence on maintaining sovereignty over the Strait of Hormuz, a critical global energy corridor, which it describes as its “natural and legal right.”

The U.S. proposal reportedly includes demands for Iran to dismantle its nuclear programme, scale back missile development, relinquish control over the strait, and cease support for regional allies.

However, Tehran maintains the proposal falls short of acceptable terms.

“If realism prevailed in Washington, a path forward may still be found,” an Iranian official said, adding that the plan does not meet “minimum requirements for success.”

Trump, meanwhile, adopted a mix of threats and diplomacy, urging Iran to “get serious” while insisting he is not eager for a deal.

“They better get serious soon… it won’t be pretty,” he warned, even as he claimed Iran was “begging” for negotiations.

Negotiation dynamics have also shifted, with Iran reportedly unwilling to engage with Steve Witkoff or Jared Kushner, instead favouring talks with Vice President JD Vance.

A source told The Guardian: “With Witkoff and Kushner, nothing will come out of it.”

On the military front, Israel confirmed the killing of Iranian naval commander Alireza Tangsiri, as Prime Minister Benjamin Netanyahu said operations against Iranian targets would continue.

The global impact is already being felt in countries like Nigeria, where fuel prices remain elevated. NNPC Limited currently sells petrol at N1,261 per litre in Abuja, while major marketers charge as high as N1,371—significantly above pre-crisis levels.

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