Iran has officially responded to the latest peace proposal from the United States as diplomatic efforts continue to prevent a wider escalation in the Middle East conflict that has destabilized global energy markets.
Iran’s state-run Islamic Republic News Agency confirmed that Tehran submitted its reply to Washington’s proposal, though officials did not publicly disclose the contents of the response.
The plan proposed by Donald Trump reportedly includes a phased reopening of the Strait of Hormuz and an end to U.S. restrictions targeting Iranian ports within the next month.
However, Iranian authorities have not yet indicated publicly whether they are prepared to fully accept the proposal.

Hormuz Remains the Center of the Crisis

The Strait of Hormuz remains the central issue in the conflict, with the strategic waterway still operating under severe restrictions after months of military escalation.
Before the war began in late February, roughly 20% of global oil and liquefied natural gas shipments moved through the strait.
The conflict has disrupted global energy flows, triggered sharp increases in fuel prices, and intensified inflation pressures worldwide.
Although a ceasefire officially took effect on April 8, multiple security incidents continue threatening stability in the region.
A drone strike on Sunday temporarily set a cargo vessel ablaze near Qatar, while the United Arab Emirates and Kuwait both reported intercepting hostile drones.
Iranian Deputy Foreign Minister Kazem Gharibabadi also warned that British and French naval deployments in Hormuz could face what he described as a “decisive and immediate response” from Iranian forces.

Trump and Netanyahu Warn Conflict May Continue

President Trump warned over the weekend that the United States could pursue alternative measures if negotiations fail to produce a finalized agreement.
Trump criticized Iran in social media remarks and suggested Washington may expand maritime operations linked to “Project Freedom,” the brief U.S. effort to escort ships through the strait and challenge Iran’s maritime restrictions.
Meanwhile, Benjamin Netanyahu stated that the conflict is “not over,” arguing that additional actions may still be necessary to dismantle Iran’s nuclear infrastructure and highly enriched uranium stockpiles.
Although the current peace framework focuses primarily on restoring shipping access and reducing military tensions, negotiations over Iran’s nuclear program remain unresolved and highly contentious.

Energy Markets Remain Under Pressure

The prolonged disruption in Hormuz continues weighing heavily on global energy markets.
Saudi Aramco warned that oil markets may require several months to normalize even if shipping routes reopen immediately.
Aramco Chief Executive Amin Nasser said prolonged shipping disruptions could delay full market stabilization until 2027 if trade constraints continue.
Some Gulf producers have already adapted by rerouting exports through alternative pipeline infrastructure and limited shipping corridors.
Bloomberg ship-tracking data showed Qatar successfully exported a liquefied natural gas shipment through Hormuz this weekend for the first time since the conflict began.
The cargo was reportedly headed to Pakistan, which has emerged as an important mediator in U.S.-Iran negotiations.

Oil Prices Stay Elevated Despite Diplomacy Hopes

Oil prices remain elevated as traders continue balancing diplomatic optimism against ongoing military and shipping risks.
Brent crude settled around $101 per barrel on Friday, though prices still recorded a weekly decline of approximately 6% as markets reacted to fluctuating ceasefire expectations.
The conflict has sharply increased global fuel prices and intensified economic pressure on governments, consumers, and central banks worldwide.
The crisis is also becoming an increasingly important political issue in the United States ahead of upcoming midterm elections as gasoline prices continue rising.

Markets Watch for Signs of De-Escalation

Investors and governments are now closely monitoring whether Iran and the United States can move beyond temporary ceasefire arrangements toward a more durable political settlement.
Any sustained reopening of Hormuz would likely ease pressure on oil markets, inflation expectations, and global shipping flows.
However, ongoing military incidents, unresolved nuclear disputes, and conflicting political demands continue making the path toward a comprehensive agreement highly uncertain.