Iran Rejects War End Proposal As Oil Climbs Above $103 Bucketing Fear Of De-Escalation
Oil prices surged past the psychological barrier of 26 March, with Brent climbing to over US$103 per barrel and WTI futures rising more than one dollar as Iran explicitly rejected direct U.S.-led negotiations despite reviewing a peace proposal earlier that day.
Key Points
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1Oil prices rose and equities slid as tensions in the Middle East increased following reports from Iran rejecting direct talks with President Donald Trump.
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2Iran's foreign minister confirmed there are no plans to engage in negotiations despite senior officials reviewing a U.S. proposal aimed at ending the conflict.
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3Brent crude futures climbed nearly 2% above $104 per barrel while US West Texas Intermediate (WTI) reached over $91, driven by fears of prolonged war and fading hopes for de-escalation.
Developments
Oil prices surged while equities fell as US President Donald Trump threatened Iran with obliteration despite claiming ongoing peace negotiations, amid uncertainty over the Strait of Hormuz and continued conflict strikes on both sides. Brent crude closed up nearly six percent at $108 per barrel after earlier gains were eroded by market fears regarding an imminent deadline for attacks on Iranian power plants set to begin April 6th.
U.S. West Texas Intermediate crude futures rose 1% to $91.25 a barrel after falling earlier in the week while Iran reviews President Trump's proposal for an end to Gulf war tensions despite public opposition and threats of military escalation if terms are rejected, with Tehran reportedly delaying its formal response pending further consideration by some officials regarding Pakistan's delivery on Washington's 15-point plan.