Oil Prices Jump As Trump Rejects Iran’s Peace Terms, Fears Grow Over Middle East Crisis
Global oil prices climbed sharply on Monday after United States President Donald Trump dismissed Iran’s latest conditions for ending the ongoing Middle East conflict, fueling fresh fears of prolonged instability and possible disruption to global crude oil supplies. The renewed tension between Washington and Tehran rattled financial markets, with investors closely monitoring the situation around the Strait of Hormuz — one of the world’s most critical oil shipping routes. Analysts warned that continued uncertainty in the region could keep energy prices elevated in the coming weeks, especially if the conflict begins to affect crude transportation through the Gulf. Trump Rejects Iran’s Response The latest spike in oil prices followed strong remarks from President Trump after reviewing Iran’s response to a proposed peace arrangement. Reacting publicly, Trump made it clear he was dissatisfied with Tehran’s position and hinted that negotiations were far from successful.“I have just read the response from Iran’s so-called ‘Representatives.’ I don’t like it — TOTALLY UNACCEPTABLE!” Trump said. His comments immediately weakened hopes of a quick diplomatic breakthrough and intensified concerns that the crisis may continue for much longer than expected. Iran Refuses To Back Down Iranian President Masoud Pezeshkian also pushed back strongly against pressure from the United States, insisting that Iran would not accept any agreement that appeared to weaken the country’s standing. In a statement shared on 𝕏, Pezeshkian said dialogue should not be mistaken for surrender. “We will never bow down to the enemy, and if there is talk of dialogue or negotiation, it does not mean surrender or retreat,” he wrote. The exchange between both leaders further deepened market anxiety, particularly among traders worried about possible disruptions in global energy supply chains. Oil Market Reacts To Hormuz Fears The Strait of Hormuz remains one of the biggest concerns for the international oil market because a large percentage of the world’s crude oil passes through the narrow waterway daily. Any threat to movement in the area could trigger major supply shortages and force prices even higher. Financial analysts noted that the sharp disagreement between the United States and Iran showed there was still a significant gap between both sides. Lloyd Chan of Japanese financial group MUFG said Trump’s swift rejection of Iran’s demands signaled that the crisis may not end anytime soon. “President Trump’s swift rejection of these counter-demands underscores the wide gulf between both sides, pointing to a risk of prolonged uncertainty rather than rapid de-escalation,” Chan said. He added that the situation could continue to place a “geopolitical risk premium” on oil prices if tensions around Hormuz persist. Asian Markets Trade Mixed Amid Global Uncertainty While oil prices surged, Asian stock markets recorded mixed performances as investors reacted cautiously to the evolving geopolitical situation and fresh economic developments. Japan’s Nikkei 225 dropped by 0.36 per cent, while Hong Kong’s Hang Seng Index also slipped slightly. However, China’s Shanghai Composite Index posted gains, while South Korea’s KOSPI jumped four per cent, driven largely by strong technology stocks. In Japan, gaming giant Nintendo suffered a major setback after its shares fell nearly 10 per cent following warnings of lower profits and plans to increase the price of its upcoming Switch 2 console. Trump Heads To China Amid Rising Tensions The Middle East crisis is also expected to dominate discussions as President Trump prepares for a high-level summit with Chinese President Xi Jinping later this week. US Treasury Secretary Scott Bessent is scheduled to visit Japan and South Korea before travelling to China ahead of the summit. Beijing confirmed that the talks between Trump and Xi would hold from Wednesday to Friday. The meeting comes at a sensitive time for global markets, especially with lingering concerns over trade tensions, military conflicts and energy security. Oil Prices Near $100 Mark By early Monday trading, Brent crude rose by 4.75 per cent to $99.95 per barrel, while West Texas Intermediate climbed 4.16 per cent to $105.50 per barrel. Currency markets also reacted cautiously, with the dollar strengthening against the Japanese yen while both the euro and British pound weakened slightly. As tensions continue between Washington and Tehran, investors remain on edge over whether diplomacy can still prevent a deeper regional crisis — or whether the world could be heading into another major oil shock.
Marshall Bassey
May 11, 2026
