Global crude oil prices rose sharply on Thursday after Iran rejected a 15-point peace proposal from the United States aimed at ending the ongoing conflict involving Israel, worsening uncertainty in energy markets and pushing fuel costs higher worldwide.
Crude prices increased by about 5.98 percent to roughly $108.3 per barrel following Tehran’s criticism of the proposal, which Iranian officials described as one-sided and tilted in favour of Washington and Tel Aviv. The price had earlier dropped from about $103 to $98 per barrel after Donald Trump said the US was exploring talks with Iran to end the crisis.
In Nigeria, petrol prices remain elevated amid the volatility. NNPC Limited was selling fuel at about ₦1,261 per litre in Abuja, while major marketers dispensed at roughly ₦1,371 per litre. Before the conflict escalated in late February, the same outlets sold at around ₦860 and ₦880 per litre respectively.
A senior Iranian official told Reuters that Tehran had not ruled out diplomacy but said there was currently no realistic framework for meaningful peace talks. Iran also reaffirmed what it described as its legal right to control the strategic Strait of Hormuz, a key global oil shipping route.
The US proposal reportedly included demands for Iran to dismantle its nuclear programme, limit its missile capabilities, relinquish influence over the Strait of Hormuz, and halt support for regional armed groups. Iranian officials said the conditions failed to meet minimum requirements for a workable agreement.
Trump urged Tehran to take negotiations seriously, warning that time was running out. In a social media post, he claimed Iranian leaders were reluctant to acknowledge talks publicly and warned consequences could escalate if progress was not made soon.
Iran, however, indicated it was unwilling to resume negotiations through US Middle East envoy Steve Witkoff or Trump’s son-in-law Jared Kushner, instead signalling preference for engagement involving Vice President J. D. Vance, whom it considers more receptive to diplomatic options.
Meanwhile, Israel said it killed Iranian naval commander Alireza Tangsiri, whom it accused of overseeing plans linked to the attempted closure of the Strait of Hormuz. Israeli Defence Minister Israel Katz described the strike as part of ongoing efforts to weaken Iran’s operational capabilities, while Prime Minister Benjamin Netanyahu said Israeli forces would continue targeting strategic sites across Iran.
Trump also suggested the United States could consider taking control of Iran’s oil infrastructure as part of its broader strategy in the conflict, though he emphasised that Tehran would need to convince Washington to halt military operations as diplomatic options remained uncertain.
Rising tensions in the Middle East continue to drive instability in global energy markets, with analysts warning that prolonged disruption around the Strait of Hormuz could further push crude prices higher and sustain pressure on fuel costs in import-dependent economies such as Nigeria.
