Global Oil Prices Surge Following Trump’s Rejection Of Iran Proposal

Oil prices rose in Asian trade on Monday, after United States President Donald Trump rejected Iran’s conditions for ending the war in the Middle East, bringing fresh fears of prolonged tension and possible disruption to global oil supplies.

The development unsettled markets and investors were watching the possible impact of the conflict on shipments through the Strait of Hormuz, a major route for global crude oil transportation, it was reported.

Trump’s rejection of Iran’s response to his latest peace proposal raised concerns that the crisis could drag on, instead of moving quickly toward de-escalation.

Trump, who is due in China this week where the Middle East conflict is expected to be a major topic of discussion, strongly criticised Iran’s stance.

I just read the response of the so-called “Representatives” of Iran. “I don’t like it — TOTALLY UNACCEPTABLE!”

But Iranian President Masoud Pezeshkian said Tehran would not accept any arrangement that appeared to weaken its position.

“We will never submit to the enemy,” he wrote on 𝕏 on Sunday. “If there is talk of dialogue or negotiation, it does not mean surrender or retreat.”

The exchange further clouded hopes for a swift resolution to the crisis.

Analysts told AFP the sharp rift between Washington and Tehran had raised the risk of continued instability in the oil market.

Trump’s response showed the two sides were still far apart, said Lloyd Chan of Japanese bank MUFG.

He said President Trump’s swift rejection of these counter-demands “underscores the deep divide between both sides and suggests a possibility of extended uncertainty rather than quick de-escalation.”

“For oil markets this indicates a lasting geopolitical risk premium as Hormuz disruptions persist,” Chan added.

Traders have been concerned about the Strait of Hormuz, where any upset could affect supply of crude and send prices higher.

Asian Stock Markets Mixed
Asian shares were mixed Monday, May 11, 2026 as investors considered the impact of the Middle East crisis and developments in technology shares and trade diplomacy.

Japan’s Nikkei 225 fell 0.36 percent to 62,486.84 and Hong Kong’s Hang Seng Index lost 0.34 percent to 26,303.16.

Shanghai’s Composite Index advanced 0.89 per cent to 4,216.96.

The KOSPI in South Korea gained four per cent, helped by a strong performance in technology stocks.

TOKYO (Reuters) – Shares of Japanese gaming giant Nintendo fell by almost 10 percent in Tokyo on Friday after the company warned of lower profits this year and said it would raise the price of its Switch 2 console.

United States Treasury Secretary Scott Bessent was scheduled to visit Japan and South Korea before heading to China for Trump’s high-stakes summit with Chinese President Xi Jinping.

Beijing said on Monday that the summit would be held from Wednesday to Friday.

Bessent was scheduled to meet Prime Minister Sanae Takaichi in Japan on Tuesday, with discussions expected to focus on Japan’s reported recent market interventions to support the yen.

US Treasury Secretary to meet Chinese Vice Premier He Lifeng in Seoul

“National security is economic security,” Bessent wrote on 𝕏.

Washington and Beijing had slapped tit-for-tat tariffs on each other’s exports a year ago, but Trump and Xi later reached a year-long trade truce in October during talks in South Korea.

Market Data
Brent North Sea crude was 4.75 per cent higher at $99.95 a barrel at around 0330 GMT. West Texas Intermediate also gained 4.16 per cent to $105.50 a barrel.

The euro dropped to $1.1758 from $1.1779 Friday. The pound was lower at $1.3592 from $1.3625.

The dollar rose to 157.14 yen from 156.76 yen and the euro nudged up a little against the pound to 86.50 pence from 86.45 pence.

The Dow ended flat at 49,609.16 in New York.