US President Trump Rejects Iran's Peace Terms, Fuel Prices Rise

Kathmandu. Asian market fuel prices have increased after US President Donald Trump rejected Iran's terms to end the West Asian conflict on Monday.

The possibility of further violence in the Strait of Hormuz and disruption to oil supply has increased after President Trump rejected Iran's response to his latest peace proposal.

President Trump, who is scheduled to visit China this week, appears likely to focus his China visit on efforts to end the Iran war. He said, "I have just read the response of Iran's so-called 'representatives'. I did not like it. It is completely unacceptable."

Iranian President Masoud Pezeshkian said in a message on social media X on Sunday, "We will never bow to enemies, and if there is talk of negotiation or dialogue, it does not mean surrender or backing down."

"US President Trump's immediate rejection of these demands indicates the wide gap between the two sides and signals that it will lead to long-term uncertainty risks rather than rapidly reducing tensions," said Lloyd Chan of Japanese bank MUFG.

"For the oil market, this signals the possibility of continued geopolitical risk as disruptions in Hormuz are now likely to increase," Chan added. Fuel market analysts in Japan said, "As the US President's statement became public, Nikkei fell by 0.4 percent and Hang Seng by 0.34 percent, but Seoul's KOSPI rose by four percent."

In Tokyo, Nintendo's shares fell by nearly 10 percent after a giant Japanese gaming company warned of lower profits this year on Friday. Meanwhile, US Treasury Secretary Scott Bessent is scheduled to visit Japan and South Korea before going to China to prepare for high-level summit talks with President Xi Jinping.

In Japan, Bessent is scheduled to meet Prime Minister Sane Takaichi on Tuesday. Tokyo has recently reported market intervention to support the yen. In Seoul, he is scheduled to meet Chinese Vice Premier He Lifeng.

"Economic security is national security," Bessent wrote on social media X. Washington and Beijing imposed extensive tariffs on each other's exports a year ago, and Trump and Xi agreed to a year-long trade ceasefire in South Korea in October.