US-Iran war: Oil prices surged on Monday, 11 May, after the United States and Iran failed to reach an agreement on a Washington-backed peace proposal, while the Strait of Hormuz largely remained shut, raising concerns over tight global energy supplies.
rose $3.18, or 3.14%, to $104.47 a barrel, building on Friday’s 1.23% gain. Meanwhile, US West Texas Intermediate crude advanced $3.92, or 4.11%, to $99.34 a barrel, following a 0.64% increase in the previous session.
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In a post on social media, described the response as “TOTALLY UNACCEPTABLE” as both sides continued to grapple with maintaining a fragile ceasefire after repeated flare-ups in tensions.
According to a Reuters report, Trump is set to meet Chinese President Xi Jinping this week, and US officials said on Sunday that he is likely to raise concerns over China’s stance on Iran during the talks. Discussions are expected to include the revenue China generates for Iran, along with possible Chinese weapons exports to the country.
The near shutdown of the Strait of Hormuz since the conflict erupted in late February has severely disrupted supplies of crude oil, natural gas, and fuels to global markets, pushing energy prices higher and stoking inflation concerns. According to the International Energy Agency, the conflict has triggered the largest supply shock on record.
Iran reportedly proposed transferring part of its highly enriched uranium stockpile to a third country but refused to dismantle its nuclear facilities, according to Wall Street Journal report. Tehran later denied the report, according to the semi-official Tasnim news agency.
Meanwhile, a drone strike on Sunday briefly ignited a cargo ship off the coast of Qatar in the Persian Gulf, marking the latest attack on shipping routes since the ceasefire took effect in early April. The UAE and Kuwait also reported intercepting hostile drones.
Saudi Aramco CEO Amin Nasser warned on Sunday, as quoted by Reuters, that markets may not stabilize until 2027 if disruptions to shipping through Hormuz continue for several more weeks. To compensate for supply losses, the company has rerouted some oil shipments through its Yanbu port on Saudi Arabia’s west coast.
(With inputs from agencies)
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