Global Oil Prices Surge 4% After Trump Rejects Iran's Proposal

Global oil prices surged at the start of trading this week after US President Donald Trump rejected Iran’s latest proposal to end the Middle East conflict. This situation has prolonged global energy distribution disruptions due to the effective closure of the Strait of Hormuz. Citing Bloomberg on Monday (11/5/2026), Brent crude prices rose as much as 4.2% to $105.54 per barrel, while West Texas Intermediate (WTI) crude broke through $99 per barrel. In a social media post, Trump described Iran’s response to the US peace proposal as “totally unacceptable.” The near-total closure of the Strait of Hormuz since the war broke out at the end of February 2026 has hindered shipments of crude oil, natural gas, and fuel to various countries. This has driven up global energy prices and sparked inflation concerns. The International Energy Agency (IEA) has even called the conflict the largest energy supply shock in history. Warren Patterson, Head of Commodities Strategy at ING Groep NV, said market optimism about a US-Iran peace deal is fading. He assessed that market concerns over potential conflict escalation are rising again, opening the door for further oil price increases. On the other hand, a Wall Street Journal report claimed Tehran offered to transfer some of its highly enriched uranium reserves to a third country. However, Iran rejected the dismantling of its nuclear facilities. The Iranian government then denied the report via the semi-official Tasnim news agency. Tensions in the region have also escalated again after a drone attack on Sunday (10/5/2026) caused a cargo ship to catch fire temporarily near Qatar in the Persian Gulf. The attack is the latest incident against shipping routes since the ceasefire was imposed in early April. The United Arab Emirates and Kuwait also claimed to have intercepted hostile drones.