Oil prices rose in Asian trade on Monday after United States President Donald Trump rejected Iran’s conditions for ending the war in the Middle East, bringing fresh fears of prolonged tension and possible disruption to global oil supplies.
The development rattled markets and investors were watching potential impact of the conflict on shipments through the Strait of Hormuz, a key route for global crude oil shipments, it was said.
Trump’s dismissal of Iran’s response to his latest peace offer raised concerns that the crisis wouldn’t quickly de-escalate.
Trump, who is due in China this week where the Middle East conflict is expected to be a major topic of discussion, strongly criticised Iran’s position.
He said, “I just read the response of Iran’s so-called “Representatives. “I don’t like it — TOTALLY UNACCEPTABLE!”
But Iranian President Masoud Pezeshkian said Tehran would not accept any arrangement that seemed to weaken its position.
On Sunday, he wrote on 𝕏, “We will never submit to the enemy, and if there is talk of dialogue or negotiation, it does not mean surrender or retreat.”
The exchange further dimmed hopes for a quick resolution to the crisis.
Analysts said the sharp disagreement between Washington and Tehran had increased the risk of continued instability in the oil market, AFP reported.
Trump’s response showed the two sides were still far apart, said Lloyd Chan of Japanese bank MUFG.
“President Trump’s prompt dismissal of these counter-demands highlights the deep divide between both sides and suggests a possibility of extended uncertainty rather than quick de-escalation,” he said.
“For oil markets this points to an enduring geopolitical risk premium as Hormuz disruptions linger,” Chan added.
The Strait of Hormuz has been a big worry for traders as any disruption in the area could impact crude supply and drive up prices.
Asian Stocks Diverge
Asian shares were mixed Monday, May 11, 2026 as investors weighed the effects of the Middle East crisis alongside developments in technology shares and trade diplomacy.
Japan’s Nikkei 225 fell 0.36% to 62,486.84 and Hong Kong’s Hang Seng Index dropped 0.34% to 26,303.16.
The Shanghai Composite Index added 0.89 percent to 4,216.96.
In South Korea, the KOSPI rose four per cent, helped by a strong performance in technology stocks.
Shares of Japanese gaming giant Nintendo fell by almost 10 per cent in Tokyo after the company warned on Friday of lower profits this year and said it would raise the price of its Switch 2 console.
United States Treasury Secretary Scott Bessent was due in Japan and South Korea before heading to China for Trump’s high-stakes summit with Chinese President Xi Jinping.
The summit will run from Wednesday to Friday, Beijing said on Monday.
Bessent was expected to meet Prime Minister Sanae Takaichi in Japan on Tuesday, likely to discuss Japan’s reported recent market interventions to support the yen.
US Treasury Secretary said he would meet Chinese Vice Premier He Lifeng in Seoul.
Bessent wrote on 𝕏, “National security is economic security.”
Trump and Xi agreed to a year-long trade truce in October during talks in South Korea after Washington and Beijing imposed tit-for-tat tariffs on each other’s exports a year ago.
Market Data
Brent North Sea crude was up 4.75 per cent to $99.95 a barrel at about 0330 GMT. West Texas Intermediate also rose 4.16 per cent to $105.50 a barrel.
The euro fell to $1.1758 from $1.1779 Friday. The pound was down at $1.3592 from $1.3625.
The dollar climbed to 157.14 yen from 156.76 yen and the euro nudged up a little against the pound to 86.50 pence from 86.45 pence.
In New York, the Dow ended flat at 49,609.16.
