Oil prices rose on Monday, May 11, 2026, as prospects for a U.S.-Iran peace deal faded after President Trump rejected Iran's latest proposal as "TOTALLY UNACCEPTABLE!". The failure to reach an agreement has renewed fears of prolonged supply disruptions in the Strait of Hormuz, a critical waterway that remains largely closed, keeping global energy markets under pressure.

 

Oil Prices Rise as Prospects for U.S.-Iran Peace Deal Fizzle

Oil prices rose on Monday, May 11, 2026, as prospects for a U.S.-Iran peace deal faded after President Trump rejected Iran's latest proposal as "TOTALLY UNACCEPTABLE!". The failure to reach an agreement has renewed fears of prolonged supply disruptions in the Strait of Hormuz, a critical waterway that remains largely closed, keeping global energy markets under pressure.

 

Current Oil Prices (May 11, 2026)

• Brent Crude: The global benchmark rose more than 3% to trade at approximately $105 per barrel.
• WTI Crude: The U.S. benchmark jumped over 4%, trading at over $99 per barrel.

Key Developments

• Peace Proposal Failure: Negotiators were discussing a "one-page" short-term agreement via Pakistan to pause hostilities for 30 days and reopen the Strait of Hormuz. However, Iran's counterproposal included demands for sovereignty over the Strait, which led to the current impasse.
• Market Impact: Analysts from Goldman Sachs warn that if the conflict escalates further, prices could reach $115 to $130 per barrel.
• U.S. Response: Energy Secretary Chris Wright noted that the administration might consider pausing the federal gas tax (18.4 cents per gallon) as U.S. national average gas prices sit at $4.52 per gallon.
• Stock Market: While oil surged, major stock futures like the S&P 500 showed slight declines as investors reacted to the increased geopolitical risk and potential for energy-driven inflation.