Oil Prices Climb to $103 Amid Ongoing Iran-US Conflict
Oil prices surged on Thursday morning, reaching $103 a barrel, as the war between Iran and the United States continues to disrupt global energy flows. This increase follows Iran's announcement that it is still reviewing a US proposal to end the hostilities, which has injected uncertainty into markets.
Trump's Claims of Secret Negotiations
US President Donald Trump stated that Iranian leaders are secretly negotiating with Washington but are too afraid to admit it publicly due to fears of backlash from their own population. "They want to make a deal so badly," Mr Trump remarked, though he provided no concrete evidence to support these assertions.
According to three Israeli cabinet sources familiar with the plan, Trump's 15-point peace proposal, delivered via Pakistan, includes demands for Iran to remove its stocks of highly enriched uranium, halt enrichment activities, curb its ballistic missile program, and cut off funding for regional allies.
Iran's Firm Stance Against Negotiations
In response, Iran's Foreign Minister, Abbas Araghchi, acknowledged that messages have been exchanged through mediators but emphasised that this does not constitute ongoing negotiations with the US. He reiterated Tehran's demand for a permanent end to the war and compensation for all destruction incurred during the conflict.
Meanwhile, the US has confirmed the deployment of additional troops to the Middle East after Iran reportedly rejected what it termed the "excessive" demands of Trump's peace plan.
Global Economic Ripples and Strategic Responses
The economic impact of the conflict is being felt worldwide. Japan, the world's fifth-largest oil importer, has begun releasing another portion of its strategic oil reserves to cushion the effect of surging prices. More than 90% of Japan's crude oil is sourced from the Middle East, making it particularly vulnerable to supply disruptions.
In the UK, the government is taking action to mitigate potential shortages caused by the war. A mothballed carbon dioxide plant on Teesside is set to be reopened with a grant of up to £100 million. This move aims to address fears of CO2 shortages, which is vital for sectors such as beverages and the nuclear industry, as other sources like fertiliser factories face soaring energy costs.
Military Developments and International Reactions
Israel launched heavy strikes around Isfahan, a city housing major military sites, including an air base and nuclear facilities previously targeted during the conflict. Activists and news agencies reported attacks on residential areas, though details remain scarce.
On the diplomatic front, China's top diplomat, Wang Yi, expressed a "glimmer of hope" for peace in the Middle East, urging dialogue between Tehran and Washington. However, this optimism was tempered by Iran's continued refusal to engage in formal negotiations.
Additionally, reports indicate that Russia is preparing to send drones, medicine, and food to Iran, with western intelligence suggesting that Moscow has provided critical support, including satellite imagery and targeting data, to its ally.
Political Tensions in the US
Within the United States, political divisions are emerging over the conflict. House Speaker Mike Johnson maintains that the US is not at war with Iran, despite troop deployments, stating that "the build-up of troops is very different than boots on the ground." This stance contrasts with growing concerns among some lawmakers and analysts who view the military actions as indicative of a full-scale war.
In a related development, White House staffers were reportedly baffled by Trump's claim that Iran had given him a mysterious "very big present," which he refused to disclose, adding to the surreal nature of the ongoing crisis.
As the situation evolves, South Korean President Lee Jae Myung has called for public electricity conservation, warning that rising fuel prices could strain power demand in the import-dependent economy. The global community watches closely, with oil markets remaining volatile and diplomatic efforts facing significant hurdles.
