• Oil prices surged above $105 per barrel after the United States President, Donald Trump, rejected Iran’s peace response
• Iran demanded an end to the war, sanctions relief, and guarantees against future attacks
• Trump called Tehran’s proposal “TOTALLY UNACCEPTABLE” on Truth Social

Global oil prices surged on Monday, May 11, after the United States President, Donald Trump, rejected Iran’s response to a proposed peace framework aimed at ending the ongoing Middle East conflict, raising fears that the war could drag on and further disrupt global energy supplies.

International benchmark Brent crude climbed by more than four per cent to $105.50 per barrel during Asian trading, while US West Texas Intermediate crude rose to nearly $100 per barrel as investors reacted to the worsening diplomatic deadlock.

The latest spike came after Tehran submitted its response to Washington’s peace proposal through Pakistan, which has been acting as an intermediary between both countries.

According to Iran’s semi-official Tasnim news agency, Tehran demanded an immediate end to the war, guarantees against future US-Israeli attacks, the lifting of sanctions, and recognition of Iranian sovereignty over the Strait of Hormuz.

Iran also reportedly requested compensation for damages caused by the war and called for an end to the US naval blockade and restrictions on Iranian oil exports.

Trump, however, swiftly dismissed the proposal.

“I don’t like it — TOTALLY UNACCEPTABLE,” the US president wrote on Truth Social without elaborating further.

Washington’s earlier proposal had reportedly included restoring safe passage through the Strait of Hormuz and suspending Iran’s uranium enrichment programme before broader negotiations could begin.

The conflict, which began on February 28, has severely disrupted shipping through the Strait of Hormuz, a critical waterway that normally handles nearly one-fifth of global oil and liquefied natural gas supplies.

Tehran has threatened to target vessels attempting to cross the strait in retaliation for US-Israeli military actions, effectively paralyzing traffic in the region.

Despite a ceasefire announced in early April to create room for negotiations, tensions have continued to simmer, with repeated security incidents around the Gulf.

Shipping data from Kpler and LSEG showed that only a handful of oil tankers managed to pass through the strait in recent days, some reportedly switching off tracking systems to avoid potential Iranian attacks.

Market analysts say the oil market has become highly reactive to every diplomatic development.

“The oil market continues to trade like a geopolitical headline machine, with prices swinging sharply based on every comment, rejection, or warning coming from Washington and Tehran,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

Israeli Prime Minister Benjamin Netanyahu also signaled that the conflict was far from over, insisting that Iran’s enriched uranium stockpiles and nuclear infrastructure must still be dismantled.

“There is more work to be done,” Netanyahu said in an interview aired on CBS News’ “60 Minutes,” while noting that diplomacy remained the preferred option for removing Iran’s enriched uranium.

Iranian President Masoud Pezeshkian, meanwhile, vowed that Tehran would not surrender under pressure.

“Iran will never bow down to the enemy,” he said in a social media post, adding that the country would defend its national interests “with strength.”

The prolonged conflict is increasingly weighing on global economies and political calculations in Washington.

Rising fuel prices have become a growing concern for American voters ahead of upcoming congressional elections, while the US has struggled to gain broad international backing for military operations aimed at reopening the Strait of Hormuz.

Several Gulf countries have also reported fresh security threats in recent days.

The United Arab Emirates said it intercepted two drones launched from Iran, while Qatar condemned a drone strike on a cargo vessel in its territorial waters.

Kuwait also reported intercepting hostile drones that entered its airspace.

Meanwhile, clashes between Israel and Hezbollah fighters have continued in southern Lebanon despite a separate US-brokered ceasefire announced in April.

Trump is expected to travel to Beijing this week, where discussions with Chinese President Xi Jinping are likely to include efforts to pressure Tehran toward a diplomatic settlement.

Although Trump recently described Iran as “defeated,” he cautioned that the conflict may still continue.

“They are defeated, but that doesn’t mean they’re done,” he said in remarks aired on Sunday, May 10.

The uncertainty surrounding the conflict and the continued closure of the Strait of Hormuz have kept global energy markets on edge, with analysts warning that prolonged disruptions could push oil prices even higher in the coming weeks.

Trump sparks outrage after resharing ‘Strait of Trump’ map for Strait of Hormuz

Meanwhile, TheRadar earlier reported that the United States President Donald Trump had triggered fresh controversy after resharing a Truth Social post proposing that the Strait of Hormuz be renamed the “Strait of Trump,” a move widely seen as provocative amid mounting geopolitical tensions.

The post featured a map of the strategically critical waterway relabeled with the suggested name, drawing swift global attention because of the Strait’s central role in global energy security.