Oil prices surged on May 11 after President Trump declared Iran’s response to a US-drafted peace proposal “totally unacceptable,” sending both major crude benchmarks sharply higher and wiping out nearly all of the prior week’s losses in a matter of hours.

Brent crude futures climbed $4.16 to $105.45 per barrel, a 4.11% jump from the previous close of $101.29. West Texas Intermediate crude was even more aggressive, rising $4.38 to $99.80 per barrel, a 4.59% gain from $95.42.

What happened and why it matters

The prior week had seen roughly a 6% decline in both Brent and WTI prices, driven by growing market confidence that some kind of ceasefire deal between the US and Iran was actually within reach. Traders had started pricing in the possibility that the Strait of Hormuz, one of the most critical oil chokepoints on the planet, might reopen.

The Strait of Hormuz sits between Iran and Oman, and roughly a fifth of the world’s daily oil supply passes through it under normal conditions.

Iran’s proposal reportedly sought an immediate cessation of hostilities and control over the Strait, terms that Washington clearly found to be a non-starter. Trump’s public characterization of the response as “totally unacceptable” left little room for diplomatic ambiguity.

The broader supply picture

The ongoing closure of the Strait of Hormuz has forced rerouting of tanker traffic, increased shipping insurance premiums, and created a persistent supply anxiety that sits underneath every trading session.

A 6% decline built over an entire week of cautious positioning was nearly erased in a single session. The $105 level for Brent puts crude back in the triple-digit territory that had become familiar during the worst of the strait closure.

What this means for markets and energy investors

WTI flirting with the $100 mark is worth watching closely. A sustained break above that level would have downstream effects on gasoline prices, petrochemical costs, and inflation expectations.

Iran’s initial demands, including control over the strait itself, suggest Tehran isn’t in a conciliatory mood. Trump’s language was not the language of a negotiator leaving the door open.