Global oil prices climbed sharply on Monday after U.S. President Donald Trump reportedly demanded revisions to a proposed Iran peace agreement, reigniting concerns over delays to the reopening of the Strait of Hormuz and tightening sentiment across energy markets.
As at the time of writing 12:12 p.m. (WAT), Brent crude traded at $94.01 per barrel, up 3.17 per cent, while U.S. West Texas Intermediate (WTI) crude rose 3.66 per cent to $90.56 per barrel, extending gains recorded in early trading.
The latest rally followed reports that Trump returned the draft agreement for amendments, seeking stronger commitments on Iran’s nuclear programme and clearer terms governing the reopening of the Strait of Hormuz, one of the world’s most strategic energy transit corridors.
According to reports, the proposed framework includes a 60-day cessation of hostilities, measures to restore shipping access through Hormuz and a roadmap for future nuclear negotiations. However, major disagreements reportedly remain over sanctions relief, Iran’s enriched uranium stockpile and security guarantees being sought by Tehran.
The renewed uncertainty has unsettled traders who had previously priced in expectations of a quicker diplomatic resolution between Washington and Tehran. Markets had anticipated that progress in negotiations could ease disruptions around Hormuz, a critical waterway responsible for roughly one-fifth of global crude oil trade and a substantial share of liquefied natural gas exports.
Any delay in restoring unrestricted shipping through the corridor is likely to keep geopolitical risk firmly embedded in oil prices, analysts said.
Trump attempted to project optimism over the weekend, stating that Iran remained interested in reaching an agreement and insisting diplomacy was still possible. However, he also reiterated that preventing Iran from obtaining nuclear weapons remained a core U.S. objective and warned that military options had not been ruled out if talks collapse.
Tehran responded cautiously on Monday. Iranian Foreign Ministry spokesman Esmaeil Baqaei reportedly said no technical discussions were currently underway with Washington regarding Iran’s nuclear programme, emphasising that ending the conflict remained Iran’s immediate priority. Nonetheless, Iranian media reports suggested both sides continue to exchange revisions to the proposed deal, indicating negotiations remain active despite conflicting public signals.
The latest surge in crude prices marks another sharp turn for oil markets, which have swung between optimism over diplomatic progress and fears of prolonged supply disruption in the Middle East. With negotiations expected to continue for at least another week, traders are likely to remain highly sensitive to every development emerging from Washington, Tehran and the Strait of Hormuz.
For oil-exporting economies such as Nigeria, firmer crude prices could strengthen export earnings and government revenue in the near term. However, sustained geopolitical uncertainty may also complicate global fuel pricing expectations and keep energy markets on edge.