Trump Rejects Iran Deal as Oil Surges, Strait of Hormuz Crisis Deepen

Donald Trump’s rejection of Iran’s peace proposal has deepened a 10-week conflict that is disrupting global energy flows through the Strait of Hormuz. Oil prices surged as shipping remains severely limited and regional tensions escalate. With diplomacy stalled and attacks continuing across the Gulf and Lebanon, the risk of prolonged war and economic fallout is growing, even as Washington looks to China to help pressure Tehran. Make us preferred on Google Flip Share Facebook X (Twitter) LinkedIn Bluesky Email Copy Copied This official White House photograph taken on March 1, 2026 and released on March 2, 2026 on the White House X account shows US President Donald Trump overseeing “Operation Epic Fury” activity against Iran from Mar-a-Lago in Palm Beach, Florida. (Photo by Daniel TOROK / The White House / AFP) Content Share Facebook X (Twitter) LinkedIn Bluesky Email Copy Copied Flip Make us preferred on Google US President Donald Trump has rejected Iran ’s response to a US-backed peace proposal, escalating concerns that the 10-week conflict could drag on and further destabilize global energy markets. “I don’t like it – TOTALLY UNACCEPTABLE,” Trump wrote on Truth Social on Sunday, dismissing Tehran’s counteroffer without elaboration. Follow our coverage of the war on the @Kyivpost_official . The rejection triggered an immediate market reaction. As per the Reuters report, oil prices jumped by more than $4 per barrel on Monday, as fears grew that the strategically vital Strait of Hormuz would remain largely closed. Before the war began on Feb. 28, the narrow waterway handled roughly one-fifth of global oil and liquefied natural gas flows. Now, traffic has slowed to a trickle, with only a handful of tankers reported transiting the strait in recent days – some operating with tracking systems turned off to avoid potential attacks. Iran’s proposal, released Sunday, focused on ending hostilities across multiple fronts, including Lebanon, where Israel continues to fight Iran-backed Hezbollah forces. Tehran also demanded compensation for war damage, reaffirmed its sovereignty over the Strait of Hormuz, and called for the US to lift sanctions, end its naval blockade, guarantee no further strikes, and remove restrictions on Iranian oil exports. The US proposal had envisioned a ceasefire first, followed by negotiations on more contentious issues such as Iran’s nuclear program. Trump’s swift rejection now leaves diplomatic efforts in limbo. Other Topics of Interest First Qatari LNG Tanker Transits Strait of Hormuz Since Start of War The LNG tanker Al Kharaitiyat successfully exited the Strait of Hormuz on Sunday, May 10, marking the first export of liquefied natural gas from Qatar since the conflict began in late February. According to ship-tracking data, the vessel departed from the Ras Laffan plant and followed a northern route along the Iranian coast, a path reportedly approved by Tehran to build confidence during ongoing peace negotiations. The shipment is destined for Pakistan – a key mediator in the conflict – under a government-to-government deal intended to address Islamabad’s urgent fuel shortages. How is the Strait of Hormuz crisis affecting shipping and security? The standoff has turned the Strait of Hormuz into one of the central pressure points of the war. Recent incidents underscore the volatility: the United Arab Emirates reported intercepting drones launched from Iran, while Qatar condemned an attack on a cargo vessel in its waters. Kuwait also said it had engaged hostile drones in its airspace. Meanwhile, clashes continue in southern Lebanon despite a US-brokered ceasefire announced on April 16. Israeli Prime Minister Benjamin Netanyahu said the war is far from over, stressing the need to eliminate Iran’s enriched uranium stockpile, dismantle nuclear facilities, and counter Tehran’s missile capabilities and regional proxies. While he said diplomacy would be the preferred route, Netanyahu did not rule out the use of force. The conflict is also weighing on US domestic politics. Rising gasoline prices have made the war increasingly unpopular among American voters ahead of upcoming congressional elections, according to Reuters. Washington has struggled to rally international support. NATO allies have declined US calls to deploy naval forces to secure the Strait of Hormuz without a broader peace agreement and international mandate. Trump is expected to travel to China from May 13 to 15, where the conflict with Iran will be a key topic in talks with President Xi Jinping. China’s Foreign Ministry has officially confirmed the three-day visit on the morning of May 11. Earlier, the White House said the opening ceremony and key negotiations would take place on Thursday, with the visit concluding on Friday. The US is urging Beijing to use its influence over Tehran to push for a deal, though it remains unclear whether diplomatic efforts can regain momentum. Kyiv Post is Ukraine’s first and oldest English news organization since 1995. Its international market reach of 97% outside of Ukraine makes it truly Ukraine’s Global – and most reliable – Voice.