Oil Prices Climb Above $108 as Iran Criticizes U.S. Peace Proposal

Global crude oil prices continued their upward trajectory, closing at approximately $108 per barrel as tensions in the Middle East intensified. Iranian authorities sustained their criticism of a 15-point peace initiative introduced by Donald Trump, describing the proposal as biased and structured primarily to benefit the United States and Israel.

The surge in oil prices—rising by nearly 6 percent—followed Iran’s rejection of ongoing diplomatic efforts aimed at resolving the conflict. This increase reflects growing uncertainty in global energy markets, largely driven by geopolitical instability in the region.

Earlier in the week, prices had dropped from $103 to $98 per barrel after indications that Washington and Tehran might engage in negotiations. However, renewed tensions quickly reversed that trend, underscoring how sensitive oil markets remain to developments in the Middle East.

Impact on Nigeria’s Fuel Market

In Nigeria, the effect of rising global oil prices continues to be felt domestically. The state-owned oil company, NNPC Limited, currently sells petrol at about N1,261 per litre in Abuja, while private marketers offer it at around N1,371 per litre.

This marks a significant increase compared to pre-crisis levels in late February, when petrol was sold between N860 and N880 per litre. The sharp rise highlights the broader economic consequences of international conflicts on local fuel pricing.

Iran Maintains Strategic Position

Despite rejecting the U.S. proposal, Iranian officials have not entirely ruled out diplomacy. A senior official indicated that while there is currently no viable framework for meaningful negotiations, dialogue remains a possibility if more balanced terms are presented.

Tehran also reaffirmed its authority over the strategically important Strait of Hormuz, emphasizing that control of the waterway is both a sovereign and lawful right. The strait remains a critical chokepoint for global oil supply, making it central to ongoing geopolitical tensions.

Key U.S. Demands and Iran’s Response

The U.S. peace plan reportedly includes demands such as dismantling Iran’s nuclear program, limiting its missile capabilities, and relinquishing influence over the Strait of Hormuz. It also calls for an end to Iran’s support for regional allies.

Iran, however, dismissed these terms as unrealistic and one-sided. Officials argue that the proposal fails to meet basic criteria for a fair agreement and instead advances only U.S. and Israeli interests.

Escalating Rhetoric Between Washington and Tehran

President Trump urged Iran to take negotiations seriously, warning that delays could worsen the situation. He also claimed that Iranian leaders were hesitant to openly acknowledge talks due to internal pressures.

In response, Iranian authorities denied actively engaging in negotiations, stating that indirect communications do not constitute formal dialogue. The exchange highlights deep mistrust between both sides, further complicating peace efforts.

Disagreements Over Negotiation Channels

Iran has also expressed reluctance to engage with certain U.S. representatives, including Middle East envoy Steve Witkoff and advisor Jared Kushner. Instead, Tehran reportedly prefers dealing with Vice President J. D. Vance, whom it views as more pragmatic in foreign policy matters.

This shift reflects Iran’s skepticism toward previous negotiation efforts, which it believes may have been used as a cover for military actions.

Military Developments Intensify Crisis

Amid ongoing hostilities, Israel announced the killing of Iranian naval commander Alireza Tangsiri, who was reportedly overseeing operations related to the Strait of Hormuz. Israeli Prime Minister Benjamin Netanyahu described the action as part of continued strategic coordination with the United States.

The development signals further escalation, raising concerns about broader disruptions to global oil supply chains.

U.S. Considers Control of Iranian Oil

During a cabinet meeting, President Trump suggested that taking control of Iran’s oil resources remains a possible strategy. Drawing comparisons to U.S. involvement in Venezuela, he noted that similar approaches had yielded favorable outcomes for Washington.

This statement adds another layer of complexity to an already volatile situation, as control over energy resources remains a central issue in the conflict.