Oil Prices Jump Nearly 4% as US-Iran Nuclear Talks Stall, Benjamin Netanyahu Says Conflict ‘Not Over’
Oil prices surged nearly 4% after Trump rejected Iran’s nuclear counteroffer and Netanyahu warned the conflict with Tehran is “not over.”
Crude oil prices surged nearly 4% on Monday after US President Donald Trump rejected Iran’s latest nuclear counterproposal, while Israeli Prime Minister Benjamin Netanyahu warned that the conflict with Tehran was “not over,” reigniting fears of supply disruptions across the Middle East.
US West Texas Intermediate (WTI) crude futures for June delivery climbed 3.08% to USD 95.42 per barrel, while Brent crude futures for July delivery rose 3.16% to USD 104.49 per barrel. During intraday trading, both benchmarks briefly approached gains of nearly 4% as geopolitical tensions returned to the center of global energy markets.
Why Are Oil Prices Rising Today?
The sharp rally in crude prices was driven by escalating concerns over the future of US-Iran nuclear negotiations and the growing risk of disruption in the Strait of Hormuz, one of the world’s most important oil shipping routes. Iran, US Discuss 30-Day Framework to Halt Hostilities, Reopen Strait of Hormuz: Reports.
Trump Rejects Iran’s Nuclear Proposal
In a strongly worded Truth Social post, President Trump dismissed Iran’s latest counteroffer aimed at reviving negotiations.
“I have just read the response from Iran’s so-called ‘Representatives.’ I don’t like it - TOTALLY UNACCEPTABLE!” Trump wrote.
The rejection dashed hopes of a near-term diplomatic breakthrough that could ease tensions in the region and stabilize global oil flows. Iran-US War: Donald Trump Pauses Hormuz Naval Escorts After Saudi Arabia Refuses Its Airspace Use, Says Report.
Netanyahu Warns Iran Conflict Is 'Not Over'
Speaking during an interview on CBS’s 60 Minutes, Israeli Prime Minister Benjamin Netanyahu said significant issues with Iran remain unresolved, including enriched uranium stockpiles, missile production, and Tehran-backed proxy groups.
When asked how Israel and the US would remove Iran’s nuclear material, Netanyahu responded: “You go in, and you take it out.”
His comments added to market fears that military escalation could further threaten regional energy infrastructure.
Strait of Hormuz Concerns Push Crude Higher
Analysts say the biggest driver behind the latest oil surge is concern surrounding the Strait of Hormuz, the narrow waterway through which nearly 20% of global oil supply passes every day.
Analysts at Citigroup warned that crude prices could rise even further if negotiations between Washington and Tehran remain deadlocked.
The bank said risks to oil markets are now “tilted to the upside,” particularly if reopening timelines for the Strait of Hormuz are delayed or only partially implemented.
Citi analysts noted that while high global inventories and strategic petroleum reserve releases have helped limit sharper price spikes so far, those buffers may not hold if tensions intensify further.
What Could Drive Oil Prices Higher?
Several factors could continue pushing crude prices upward in the coming weeks:
- Continued collapse in US-Iran nuclear diplomacy
- Delays in reopening or securing the Strait of Hormuz
- Israeli military action targeting Iranian nuclear or energy facilities
- Prolonged disruptions to Middle East crude exports
Monday’s near-4% jump in oil prices highlights how quickly geopolitical tensions can reshape global energy markets. With Trump publicly rejecting Iran’s proposal and Netanyahu signaling that the confrontation with Tehran is far from finished, traders are increasingly pricing in the risk of prolonged supply disruptions.
Unless diplomatic progress resumes between Washington and Tehran, volatility in crude oil prices is likely to remain elevated.
(The above story first appeared on LatestLY on May 11, 2026 07:19 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
