explainer
Brent crude oil prices rise as President Trump describes Iran’s response as “totally unacceptable” and the stalemate continues.
Published May 11, 2026
Diplomatic efforts to reach a peace deal between the United States and Iran appear to have hit a wall, with both sides accusing the other of unreasonable demands, even as tensions in the Strait of Hormuz continue and oil prices hit new highs.
The US and Israel’s war against Iran entered its 73rd day on Monday. Late Sunday, US President Donald Trump flatly rejected Iran’s latest offer to end the war, without giving a reason. Days after the United States presented its offer in hopes of resuming negotiations, Iran on Sunday released a response focused on ending the war on all fronts, especially Lebanon.
Oil prices rose following President Trump’s recent comments, with international standard Brent crude oil rising 2.69% to $104.01 per barrel by 11:36 p.m. Sunday (Japan time).
Tehran’s proposal included lifting the naval blockade and lifting U.S. and international sanctions, while maintaining Iran’s control over its nuclear program and foreign policy, issues the U.S. raised at the start of the war.
President Trump said Iran’s response to the U.S. proposal was “totally unacceptable,” and Iranian state media said the U.S. plan amounted to “Iran’s capitulation to Trump’s greed.”
On Sunday, the United Arab Emirates said it had intercepted two drones from Iran, and Qatar condemned a drone attack on a cargo ship from Abu Dhabi in its territorial waters. Kuwait said its air defenses responded to a hostile drone that entered its airspace.
Here’s what we know about what happened in the past 24 hours.
in iran
Iran has executed Erfan Shakurzadeh, a 29-year-old man convicted of spying for US and Israeli intelligence services, the judicial Mizan news agency reported on Monday. The newspaper said Shakurzadeh worked for a scientific organization involved in satellite activities and shared sensitive scientific information with foreign intelligence services. He was arrested last year.
war diplomacy
EU foreign ministers meet in Brussels: Foreign ministers from European Union countries meet in the Belgian capital to discuss the war against Iran and Ukraine. President Trump and Xi meet: Trump is scheduled to arrive in Beijing on Wednesday night to discuss the war with Iran and other issues with Chinese President Xi Jinping.
in the US
Surveys show the war is unpopular with American voters, who face rising gas prices less than six months before midterm elections that will decide whether President Trump’s Republicans retain control of Congress.
in lebanon
According to Al Jazeera Arabic, despite a US-brokered ceasefire announced on April 16, Israel continues to bomb the towns of Kfar Tebnit and Chowkin. Two Lebanese doctors and a civilian were killed in an Israeli attack on an emergency response center in Bint Jubeir. The Israeli military announced the death of military driver Alexander Growanev, 47. He was killed in fighting near the Lebanese border.
world economy
Oil prices rise: Oil prices rose more than $4 a barrel on Monday on news that the narrow Strait of Hormuz remained largely closed due to a standoff. Before the war began on February 28, the waterway carried one-fifth of the world’s oil and liquefied natural gas flows and emerged as one of the war’s central pressure points. Tankers pass through the strait: Traffic in the Strait of Hormuz is minuscule compared to pre-war times, but three oil-laden tankers left the waterway last week with their tracking devices switched off to avoid Iranian attack, according to shipping data from Kupler and LSEG. Dollar gains: The dollar rose for a second day on Monday against the main Asian trading currencies, supported by strong jobs data and safe-haven demand due to the uneasy ceasefire. Gold falls: Gold prices fell on Monday as oil prices rose due to lack of progress in peace talks between the US and Iran, fueling concerns that higher inflation could lead to higher interest rates for an extended period of time.
