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March 30, 2026
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Iran Rejects US Peace Proposal as Trump Considers Seizing Key Oil Hub

Tensions between the United States and Iran continue to rise as Tehran dismissed a US peace initiative as “largely excessive and unrealistic,” contradicting President Donald Trump’s claim that Iran had accepted “most of” Washington’s 15-point proposal to end the ongoing war. Iranian officials also emphasized that no direct negotiations have taken place between the two countries.

Trump weighs seizing Kharg Island and Iranian oil

In an interview with the Financial Times, Trump suggested that the United States might target Kharg Island, Iran’s main oil export hub, and secure Iranian oil. “If we go in, US forces would probably have to remain there for a while,” he said. The island handles roughly 90% of Iran’s oil exports, making it a strategic yet heavily fortified target.

Energy markets react as oil prices surge

Following Trump’s comments, global oil prices climbed sharply. Brent crude surpassed $116 per barrel, reflecting growing market concern over potential US-Iran escalation and disruption of key oil supplies.

Escalation risks in military operations

Experts warn that any US move against Kharg Island could lead to significant casualties. Malcolm Davis, a senior analyst at the Australian Strategic Policy Institute, told CNN that Iran has fortified the area with additional troops, air defenses, and traps in recent weeks. “The Iranians could inflict heavy losses on any invading forces,” Davis said, adding that a ground invasion could occur within the next week, undermining diplomatic efforts.

Recent strikes increase tensions

The conflict has already resulted in casualties on both sides. Iranian state media reported at least two deaths in a US-Israeli strike on an orphanage in Tehran, while debris from intercepted attacks has hit an oil refinery complex in Israel. Meanwhile, Trump suggested that the recent assassinations of top Iranian officials—including Supreme Leader Ali Khamenei’s aides—represent a form of regime change, although Iran’s leadership remains firmly in control.

Mixed signals from Washington

Despite the aggressive rhetoric, Trump maintained that talks are ongoing, saying, “We’re having very good meetings, both directly and indirectly.” Yet Iran continues to reject the notion of progress, calling the US demands “unreasonable” and stressing that the path to peace remains uncertain.

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