Trump Rejects Iran's Peace Proposal, Oil Prices Surge
President Trump rejected Iran's ceasefire proposal as "totally unacceptable," citing Tehran's demands for recognition of sovereignty over the Strait of Hormuz and war compensation. Oil prices jumped 3-4% on escalation fears, with global crude rising to $104+ per barrel.
Trump's Rejection
Trump said Iran's latest peace proposal was "totally unacceptable," in a Truth Social post Sunday. Tehran wants its sovereignty over the Strait of Hormuz recognized and has also demanded compensation for war damages, according to Iranian state media.
Oil Market Impact
Oil prices are rising today, after US President Donald Trump dismissed Iran's latest terms to end the war, sparking fears of a fresh escalation in the conflict that would keep the vital Strait of Hormuz shuttered for even longer. Brent crude, the global oil benchmark, was up 2.9% to $104.2 a barrel. WTI, the US benchmark, rose 2.4% to $97.7 a barrel.
Administration Response
US Energy Secretary Chris Wright on Sunday suggested the administration may consider suspending the federal gas tax, saying the administration supports "all measures" to try and lower gas prices. "Yeah, all measures that can be taken to lower the price of at the pump and lower the prices for Americans this administration is in support of," Wright told NBC's "Meet the Press" when asked whether the administration would support suspending the tax to help give Americans relief.
Negotiations Status
Iran's foreign ministry said its response to a US proposal to end the war, which state media reported included recognition of sovereignty over the Strait of Hormuz, was "reasonable" and "generous." The terms were described yesterday by President Donald Trump as "totally unacceptable."