Crude Oil Prices: Brent Jumps, WTI at $101 as Trump Blasts Iran

WTI crude futures jumped toward $101 per barrel on Monday, May 11. In contrast, Brent crude climbed toward $106, recovering losses from last week after President Donald Trump sharply rejected Iran’s latest proposal aimed at ending the 10-week conflict. The renewed tensions immediately reignited fears over the prolonged closure of the Strait of Hormuz, one of the world’s most critical oil shipping routes. Trump escalated pressure on Tehran after calling Iran’s latest response “TOTALLY UNACCEPTABLE” in a post on Truth Social. His remarks arrived as reports suggested Iran demanded recognition of sovereignty over the Strait of Hormuz and financial compensation while refusing to dismantle its nuclear infrastructure. Markets reacted quickly because negotiations now appear stalled again after weeks of fragile diplomatic progress. Strait Of Hormuz Concerns Push Oil Higher Oil traders focused heavily on developments surrounding the Strait of Hormuz, where shipping disruptions continue to tighten global energy flows. Iran’s military warned that countries enforcing sanctions against Tehran could “face problems” when using the waterway. At the same time, drone attacks targeted a cargo vessel near Qatar in the Persian Gulf, while both the UAE and Kuwait reported intercepting hostile drones. Those incidents raised fears that the ceasefire reached earlier this year could begin unraveling. Energy markets remain highly sensitive to any threats involving Hormuz because roughly one-fifth of global oil supplies normally pass through the narrow shipping lane. The International Energy Agency has already described the current disruption as the largest supply shock on record. Crude oil, natural gas, and refined fuel shipments continue facing severe delays as insurers, cargo operators, and shipping firms avoid the region. Trump Intensifies Pressure On Tehran Trump’s latest comments signaled that Washington remains unwilling to accept Iran’s latest terms for ending the conflict. According to Iranian state media, Tehran’s counter-proposal demanded recognition of Iranian sovereignty over the Strait of Hormuz alongside compensation tied to the ongoing conflict. Reports did not specify whether the nuclear program itself remained part of the latest negotiations, though the issue continues to sit at the center of US demands. Trump accused Tehran of “playing games” with both the United States and the international community. His administration now faces growing pressure to respond as tensions continue spilling across regional waterways. Meanwhile, Trump prepares for a major diplomatic trip to China while global markets closely monitor whether negotiations can restart. So far, investors appear skeptical that a breakthrough will happen quickly. Military And Political Risks Expand Broader geopolitical developments also added fresh uncertainty to financial markets. Israeli Prime Minister Benjamin Netanyahu stated during an interview with CBS that Israel should gradually reduce its reliance on American military funding. Netanyahu said he wants annual US military assistance reduced from $3.8 billion to zero over time. Separately, reports indicated Netanyahu spoke directly with Trump shortly after Iran submitted its latest response to Washington. At the same time, analysts continue watching how China interprets the ongoing conflict. Military experts believe Beijing is closely studying US operations and regional escalation risks as tensions reshape global security dynamics. Energy Markets Brace For More Volatility Oil prices have now returned close to multi-year highs as traders confront growing fears over supply shortages and shipping disruptions. Even if negotiations resume, markets expect recovery across global trade routes to take time. Shipping bottlenecks, rising insurance costs, and reduced tanker traffic continue to limit supply availability across key regions. Brent crude already climbed during Sunday trading before extending gains on Monday. WTI prices also moved sharply higher as investors priced in worsening geopolitical risks. Energy markets remain locked on one critical issue: whether the Strait of Hormuz can reopen safely before supply disruptions trigger even deeper economic consequences worldwide.