Global Energy Markets Volatile After U.S.-Iran Naval Clashes; Peace Proposal Under Review

Global energy markets faces severe disruption following a series of naval engagements in the Strait of Hormuz. Brent crude oil prices surged as much as 15% to exceed $120 per barrel after shipping insurance giants, including Lloyd's of London, suspended coverage for vessels in the region. The disruption has effectively halted an estimated 20% of daily global oil flows, prompting supply fears among major Asian refiners. The United Arab Emirates has joined Saudi Arabia in condemning Iranian actions, reporting the successful interception of five projectiles targeting areas near the port of Fujairah. Despite the kinetic escalation, diplomatic back-channels remain active. President Donald Trump stated in a CBS interview that Tehran is currently reviewing a U.S. peace proposal focused on the total dismantlement of Iran's nuclear weapons capability. While Iranian state media has expressed reservations regarding 'civilian nuclear rights,' top diplomat Abbas Araghchi confirmed the proposal is under review with mediation from Qatar. A 24-to-48-hour window has been established for a formal response as both nations maintain a tentative pause in hostilities to evaluate the deal. On the military front, the Pentagon reported that U.S. destroyers successfully repelled unprovoked attacks, allegedly sinking six Iranian small boats and striking command centers. Iranian officials countered these claims, asserting their forces damaging American vessels after U.S. interference with Iranian tankers. Parallel to these physical skirmishes, cyberattacks have been reported against UAE telecom infrastructure, further complicating the security landscape in the Gulf.