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Trump Brands Iran Terms ‘Totally Unacceptable,’ Deadlocks Peace, Ignites Oil Surge

by OB Bureau
May 11, 2026
in World
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Trump Brands Iran Terms ‘Totally Unacceptable,’ Deadlocks Peace, Ignites Oil Surge
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Washington/Dubai: President Donald Trump shot down Iran’s offer to halt the Middle East conflict now stretching over two months, branding its conditions “totally unacceptable” and heightening risks of fresh fighting following stalled negotiations, agencies reported.

Under growing pressure at home to end the conflict, Trump asserted the Islamic Republic stands “militarily defeated.” He maintained that Tehran’s nuclear programme – a primary cause for launching the war – is now under control.

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Trump’s abrupt rebuff of Iran’s reply to a US peace initiative propelled oil prices surge sharply on Monday, stoking worries the 10-week-old war will linger and leave Strait of Hormuz shipping crippled.

The US had extended a proposal days earlier to revive talks. Iran responded on Sunday, prioritizing a full war halt across theatres, notably Lebanon where US ally Israel clashes with Iran-supported Hezbollah fighters, according to Iranian state TV.

This besides, Tehran also sought compensation for conflict damages, stressed its sovereignty over the Strait of Hormuz, demanded an end to the US naval blockade, assurances against new assaults, sanctions relief and lifting of US ban on Iranian oil exports, reported semi-official Tasnim news agency.

Trump rejected it swiftly via social media.

“I don’t like it — TOTALLY UNACCEPTABLE,” he posted on Truth Social, offering no elaboration.

The American plan called for stopping hostilities first, then tackling divisive topics like Iran’s nuclear ambitions.

Strait Chokepoint Strains Global Energy

Oil prices surged over $4 per barrel on Monday due to the stalemate, leaving the key Strait of Hormuz largely closed. Before the February 28 war began, it handled one-fifth of global oil and LNG flows and remains a central conflict zone.

“The oil market continues to trade like a geopolitical headline machine, with prices swinging sharply based on every comment, rejection, or warning coming from Washington and Tehran,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

Though Hormuz traffic has dwindled, Kpler and LSEG shipping data revealed three crude tankers exiting last week, trackers disabled to evade Iranian threats.

The US lacks international support with NATO allies refusing to send ships to clear the Strait without a complete peace deal and UN authorization. This leaves Washington isolated in efforts to reopen the vital waterway amid the ongoing conflict.

It remains unclear what diplomatic or military actions might follow next in the standoff.

Beijing Talks, Defiant Stances Persist

Trump is scheduled to visit Beijing on Wednesday, facing intense pressure to resolve the ongoing war and the resulting global energy crisis sparked by disrupted oil flows. Iran will dominate his agenda with Chinese President Xi Jinping, as Trump seeks Beijing’s help to mediate. He has repeatedly urged China to leverage its significant economic and diplomatic influence over Tehran to compel Iran into accepting a favorable US-brokered agreement.

Trump, addressing whether combat operations against Iran have concluded, stated on Sunday: “They are defeated, but that doesn’t mean they’re done.” This suggests he views Iran’s military as broken but warns its leadership or proxies could still pose ongoing threats despite the setbacks.

Israeli Prime Minister Benjamin Netanyahu insisted the war endures, with “more work to be done” to extract enriched uranium from Iran, raze enrichment facilities, and counter its proxies and ballistic missiles.

The optimal path for uranium removal is diplomacy, Netanyahu said in a Sunday “60 Minutes” CBS News interview. But he left force on the table.

Iran’s President Masoud Pezeshkian posted online that Iran would “never bow down to the enemy” and would “defend national interests with strength.”

Regional Flare-Ups Defy Peace Efforts

Meanwhile, diplomatic initiatives continue to stumble amid mounting dangers to shipping routes and regional economies.

The strait vicinity has witnessed its sharpest clashes in recent days since the early April truce took hold.

Sunday saw the UAE shoot down two Iranian drones, Qatar protest a drone strike on an Abu Dhabi cargo ship within its waters, and Kuwait’s defenses eliminate hostile drones breaching its airspace.

Southern Lebanon remains a flashpoint, with Israel-Hezbollah clashes persisting despite the US-brokered April 16 ceasefire.

Netanyahu told CBS’s “60 Minutes” that an Iran truce wouldn’t stop Lebanon operations, acknowledging Israeli planners had underestimated Tehran’s grip on Hormuz flows.

“It took a while for them to understand how big that risk is, which they understand now,” he said.

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