Iran this week officially rejected a US-mediated 15-point ceasefire proposal, pushing Brent crude oil past $108 per barrel and sparking a broad selloff in global stock markets. By early afternoon Eastern Time on Friday, Brent was trading around $104-106 after touching above $108, while West Texas Intermediate (WTI) approached $95. Heating oil surged more than 6% during the session.
Hormuz Crisis Deepens: Iran Spurns Peace Plan, Oil Prices Climb
Iranian Foreign Minister Abbas Araghchi dismissed the plan as “one-sided” and “maximalist,” calling US claims of productive negotiations “fake news.” State-run Iranian media flatly rejected the proposal, with officials stating Iran “will end the war when it decides to.” The Trump administration transmitted the 15-point framework to Tehran via Pakistani intermediaries on or around March 24. The plan included a 30-day ceasefire, sanctions relief, civilian nuclear cooperation, limits on Iran’s ballistic missile program, enhanced IAEA oversight, and guarantees for navigation through the Strait of Hormuz. Iran responded with five demands: a full halt to US and Israeli strikes, verification mechanisms against renewed fighting, war reparations, Iranian sovereignty over the Strait of Hormuz, and a complete end to sanctions.
The Strait of Hormuz carries roughly 20% of the world’s seaborne oil and LNG. Shipping volumes have collapsed by more than 95% since March 2, when Iran’s Islamic Revolutionary Guard Corps began threatening vessels. Qatar’s LNG exports are running at about 83% of capacity, while Kuwait has declared force majeure. Analysts estimate the disruption is removing 13 to 14 million barrels per day from global supply in a prolonged scenario. The conflict began in late February 2026 with US and Israeli strikes on Iranian targets, including energy infrastructure. Before the war, Brent traded around $60-70 per barrel; prices hit $120 at the crisis peak.
US Stocks Under Pressure, Energy Shares Outperform
US equity markets felt the strain. By 2:00 PM ET, the Dow Jones Industrial Average fell 603.26 points to 45,356.85; the S&P 500 dropped 86.18 points to 6,390.98; the Nasdaq Composite lost 404.39 points to 21,003.69; and the NYSE Composite declined 132.38 points to 21,711.59. Energy stocks have outperformed the broader market since the conflict began. Exxon Mobil and Chevron have risen roughly 35% since late February, though analysts say both still trail the overall move in Brent. More upside may be possible if prices stay elevated. Central banks in Europe, Asia, and the Americas are grappling with rising energy-driven inflation. The shock is drawing comparisons to the 1970s oil crises in magnitude, with analysts flagging follow-on effects on supply chains for pharmaceuticals, semiconductors, and consumer goods.
Trump: Talks Continuing Despite ‘Fake News’ Reports
President Trump threatened to escalate strikes on Iranian energy sites if ceasefire talks collapse, while extending some Hormuz-related deadlines. He wrote on Truth Social: “At the request of the Government of Iran, please let this statement serve as a representation that I am staying the period for the destruction of energy facilities for 10 days until Monday, April 6, 2026, at 8:00 P.M. Eastern Time. Talks are ongoing, and despite false statements to the contrary by the Fake News Media, and others, they are going very well.” Trump also said he plans to deliver a “big speech” on the economy in Miami, adding: “Our military operation in Iran is going great!”
Alternative pipeline routes through Saudi Arabia, the UAE, and Iraq could partially offset the Hormuz disruption, but analysts say full replacement of seaborne volumes is not possible in the near term. Markets remain sensitive to any escalation or diplomatic shift. With Iran holding its ground and Washington issuing threats, prices above $100 per barrel could persist in the medium term.
Crypto Markets: Altcoin Market Cap Dips Below $1 Trillion
In parallel with geopolitical and macro pressure, cryptocurrency markets suffered steep losses. The total altcoin market capitalization slipped below $1 trillion, with Ethereum (ETH) and Solana (SOL) leading the downturn as liquidations accelerated. Only a handful of assets bucked the trend, as risk-off sentiment dominated.