The international crude oil market experienced a sharp price hike yesterday as Iranian authorities dismissed a 15-point peace framework proposed by the United States. Tehran characterized the plan, intended to halt the ongoing US-Israel military campaign against the country, as a “one-sided” and “skewed” document designed to benefit Washington and Tel Aviv at Iran’s expense.
Following Iran’s refusal to engage with the proposal, oil prices climbed by 5.98 percent to settle at $108.3 per barrel. This surge reversed a brief period of market optimism on Wednesday, when prices had dipped from $103 to $98 per barrel following President Donald Trump’s announcement that the U.S. was seeking a diplomatic exit to the crisis.
Domestic Energy Strain in Nigeria
The global volatility continues to exert pressure on Nigeria’s domestic fuel market. Currently, petrol prices remain at record highs, with NNPC Limited retail outlets in Abuja selling at N1,261 per litre, while major independent marketers are dispensing the product at N1,371 per litre. This marks a significant jump from pre-crisis levels in late February, when NNPC and major marketers sold petrol for N860 and N880 per litre, respectively.
Tehran’s Stance on Sovereignty and the Strait of Hormuz
Speaking to Reuters, a high-ranking Iranian official clarified that while Tehran has not completely abandoned diplomacy, it views the current U.S. framework as unrealistic. A central point of contention remains the Strait of Hormuz. Iranian officials, via the Tasnim News Agency, reaffirmed their “natural and legal right” to exercise sovereignty and collect tolls in the strategic waterway.
The 15-point U.S. proposal demands that Iran dismantle its nuclear program, limit its missile development, and effectively cede control of the Strait of Hormuz. Furthermore, Washington has called for the regime to stop funding regional allies and abandon the use of armed proxies.
An Iranian representative noted that if Washington adopts a more “realistic” approach, a solution might be found. The proposal, delivered via Pakistani intermediaries, was reportedly reviewed by senior leadership and representatives of the Supreme Leader on Wednesday night.
Trump Issues Warnings via Truth Social
President Trump, however, has maintained a dual strategy of pressure and rhetoric. In a series of posts on Truth Social, he urged Tehran to “get serious” about peace before it is “too late,” claiming that Iranian leaders are “begging” for a deal but are afraid of domestic backlash if they admit to negotiating.
“They better get serious soon… because once that happens, there is no turning back, and it won’t be pretty,” Trump warned. Despite calling the Iranians “great negotiators,” the President expressed indifference toward reaching a final agreement, stating that the U.S. has “additional targets to hit” before considering a withdrawal.
A Shift in Preferred Negotiators
In a notable diplomatic development, reports indicate that Iran is no longer willing to negotiate with Trump’s Special Envoy Steve Witkoff or his son-in-law Jared Kushner. Tehran reportedly views the previous involvement of Witkoff and Kushner as a “deceptive front” used to gather intelligence for military strikes.
Sources suggest that Iran would prefer to deal with Vice President J.D. Vance. The Iranian side views Vance, a Marine veteran and noted skeptic of U.S. military interventionism, as a more credible and acceptable figure for high-level talks. “If the negotiations are going to have any outcome, JD Vance should join,” a diplomatic source stated, citing Vance’s history of caution regarding Middle Eastern conflicts.
Military Escalation and Oil Control
As the diplomatic standoff continues, the military conflict has intensified. Israel confirmed the assassination of Alireza Tangsiri, the Iranian Navy Chief responsible for the blockade of the Strait of Hormuz. Israeli Prime Minister Benjamin Netanyahu praised the operation as a testament to US-Israeli cooperation, vowing to continue “forcefully striking” targets across Iran.
Adding to the tension, President Trump suggested during a cabinet meeting that the U.S. is considering taking control of Iran’s oil reserves. He compared the potential move to the strategy employed by Washington in Venezuela, stating that seizing control of the oil remains a viable “option” for the administration.
