By George Omagbemi Sylvester
Global oil prices surged sharply after former United States President Donald Trump rejected Iran’s latest conditions for a proposed peace agreement, intensifying fears of prolonged instability in the Middle East and possible disruption of global energy supply routes.
The market reaction intensified on May 11, 2026, after Trump described Iran’s response to a U.S.-backed peace proposal as “totally unacceptable.”
The rejection triggered renewed concerns over the Strait of Hormuz, a critical global shipping route responsible for transporting a significant share of the world’s oil exports. Brent crude reportedly climbed above $104 per barrel, while U.S. crude prices also recorded major gains.
Analysts warned that continued tensions between Washington and Tehran could further destabilise energy markets already strained by geopolitical uncertainty and shipping disruptions in the Gulf region.
Iran had reportedly demanded guarantees over sanctions relief, shipping security, and nuclear negotiations as part of its peace conditions, while also warning against foreign interference in the Strait of Hormuz.
The latest development has renewed fears of inflationary pressure across global economies as rising oil prices threaten fuel costs, transportation expenses, and broader international trade stability.
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