Global oil prices climbed sharply on Thursday, rising by nearly six per cent as tensions escalated in the Middle East following Iran’s rejection of a peace proposal by the United States aimed at ending the ongoing conflict involving Israel.
Crude oil surged to about $108.3 per barrel, rebounding from an earlier drop earlier in the week after initial signals of possible negotiations between Washington and Tehran briefly calmed markets.
Iranian officials, however, dismissed the 15-point proposal put forward by US President Donald Trump, describing it as one-sided and heavily skewed in favour of the United States and Israel.
A senior Iranian official, quoted by Reuters, said the proposal failed to meet the minimum conditions for meaningful dialogue, although Tehran has not entirely ruled out diplomacy if a more balanced framework emerges.
At the centre of the dispute is Iran’s insistence on maintaining control over the Strait of Hormuz, a critical global oil transit route, which it described as a “natural and legal right.”
The US proposal reportedly included demands for Iran to dismantle its nuclear programme, curb its missile capabilities, and relinquish influence over the strategic waterway, alongside ending support for regional allies.
Despite the diplomatic standoff, Trump has continued to push for negotiations, warning Tehran to take talks seriously while claiming Iranian leaders were reluctant to openly admit participation in discussions.
“Iran was begging for a deal,” Trump said, while also maintaining that Washington was not desperate to reach an agreement and could escalate military actions if necessary.
Diplomatic tensions have also extended to negotiations, with Iran reportedly rejecting US envoy Steve Witkoff and former adviser Jared Kushner as intermediaries, instead indicating a preference to engage Vice President J.D. Vance, whom it views as more measured on military intervention.
Meanwhile, the conflict has taken a deadly turn, with Israel confirming the killing of Iranian naval commander Alireza Tangsiri, who was reportedly overseeing operations linked to the Strait of Hormuz.
Israeli Prime Minister Benjamin Netanyahu described the development as part of ongoing coordinated strikes against Iranian targets.
Back home, the ripple effects of the crisis are being felt in Nigeria, where fuel prices have surged significantly.
The Nigerian National Petroleum Company (NNPC) Limited is currently retailing petrol at about N1,261 per litre in Abuja, while major marketers are selling at around N1,371 per litre.
This marks a sharp increase from pre-crisis levels in February, when petrol sold for between N860 and N880 per litre.
The latest spike underscores the vulnerability of global energy markets to geopolitical instability, particularly in the Gulf region, which remains central to global oil supply.
As tensions persist, analysts warn that prolonged conflict and uncertainty over the Strait of Hormuz could push oil prices even higher, with far-reaching implications for economies worldwide.