Netanyahu Rejects Trump Gaza Plan as Iran-US Tensions Rise

Diplomatic efforts to stabilize the Middle East have stalled, triggering a rise in global oil prices and economic strain across Europe. Benjamin Netanyahu, Prime Minister of Israel, rejected a 15-point peace plan proposed by U.S. President Donald Trump, stating that Israeli forces will not withdraw from Gaza until Hamas is fully disarmed.

Simultaneously, tensions between the United States and Iran have escalated. Iranian Foreign Minister Abbas Araghchi ruled out direct negotiations with the U.S. to reopen the Strait of Hormuz, noting that communication is occurring only through intermediaries. In response to the instability, the United States Central Command redirected 55 commercial vessels away from Iranian ports and boarded two ships.

These geopolitical frictions have increased the risk premium on Brent and WTI crude oil. The resulting energy costs are compounding inflation and slowing economic growth in Germany and the United Kingdom, both of which are currently managing record-breaking heatwaves and extreme wildfires.