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Trump Rejects Iran's Peace Proposal, World Oil Prices Immediately Jump 3.5 Percent

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THE MIND OF THE PEOPLE – Tensions in the Middle East region have increased again after Donald Trump rejected Iran’s latest peace proposal. This rejection immediately triggered a surge in world oil prices of more than 3.5 percent in Monday’s trading, amid fears that the conflict that has been going on for 10 weeks will become more prolonged.

Based on a Reuters report on Sunday, May 11 2026, Iran previously submitted a peace proposal that focused on ending the war in various regions, especially in Lebanon, where Hezbollah and Israel are still involved in clashes.

In addition to ending the war, Tehran also demands:

  • war damage compensation,
  • recognition of Iran’s sovereignty over the Strait of Hormuz,
  • ending the US naval blockade,
  • lifting of economic sanctions,
  • until the end of Iran’s oil export ban.

However, within hours of the proposal being announced, Trump immediately rejected it via the Truth Social platform.

  • Also read: Iran threatens to attack US bases in the Middle East if Iranian tankers are attacked again

“I don’t like it, TOTALLY UNACCEPTABLE,” Trump wrote.

The US was previously said to prefer to end the conflict first before discussing sensitive issues such as Iran’s nuclear program.

Iran Calls Proposal “Generous”

Responding to Trump’s stance, Iran’s Foreign Ministry spokesman, Esmaeil Baghaei, emphasized that his country’s proposal was a “generous and responsible” step.

According to him, Iran’s demands are legitimate because they relate to:

  • end of war,
  • opening the blockade,
  • as well as the return of Iranian assets frozen due to US pressure.

Meanwhile, Iranian President Masoud Pezeshkian also emphasized that his country would not bow to external pressure.

“Iran will never bow to enemies and will defend national interests with force,” he said.

  • Also Read: Iran National Team Will Arrive in US Early Ahead of 2026 World Cup, Tehran Emphasizes Visa Issues

Strait of Hormuz Still Disturbed

The situation in the Strait of Hormuz is also still of global concern. This strategic route is known to have transported almost a fifth of the global supply of oil and liquefied natural gas before the war broke out on February 28.

Although ship traffic is said to be still far from normal, shipping data shows that several tankers have managed to cross the route by turning off their transponders to avoid potential attacks.

Regional tensions also continue to rise:

The United Arab Emirates claims to have successfully intercepted two drones said to be from Iran,
Qatar condemns drone attacks on cargo ships in its territorial waters,
while Kuwait claims its air defense system handles foreign drones entering the country’s airspace.
Trump Will Meet Xi Jinping

Trump is scheduled to visit China next Wednesday to meet President Xi Jinping.

Iran is said to be one of the main topics of discussion, with the US seeking to use China’s influence on Tehran to push for a new agreement.

On the other hand, Israeli Prime Minister Benjamin Netanyahu stated that the war was not over because there were still targets that had to be completed, including securing Iran’s enriched uranium.

This prolonged conflict is starting to have an impact on US domestic conditions. The increase in oil and gasoline prices is said to be starting to trigger public dissatisfaction ahead of the national elections which will determine the dominance of the Republican Party in Congress.

Existing surveys show the war is unpopular among US voters, especially because of its impact on people’s costs of living.***

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