Global oil prices surged sharply, while fears continue to grow that any direct confrontation between the United States and Iran could disrupt shipping through the Strait of Hormuz, worsening instability in global energy markets.
After weeks of hope that the conflict, which has lasted for nearly 10 weeks, could come to an end, Iran’s latest response dramatically changed expectations.
Iran’s reply, delivered on May 10, 2026, addressed several issues, particularly the situation in Lebanon where Israel continues to confront Hezbollah.
Tehran demanded that, before any agreement could be reached, Washington should compensate Iran for damages caused during the conflict and respect Iran’s sovereignty over the Strait of Hormuz.
Iran also called on the United States to end restrictions imposed by its naval forces, guarantee that it would not attack Iran again and lift sanctions targeting Iran’s oil exports and other sectors.
The demands reportedly shocked officials in Washington. Only hours later, Trump publicly rejected Iran’s conditions through a brief social media post.
“I do not accept it. It is completely unacceptable,” Trump wrote.
Iran later defended its position, insisting that its conditions were reasonable. Foreign Ministry spokesperson Esmaeil Baghaei said the country’s requests were aimed at restoring regional stability.
“Our demands are legitimate. Calling for a ceasefire, ending restrictions on our ships, releasing Iranian assets unfairly frozen under U.S. pressure, ensuring safe passage through Hormuz and promoting stability in the region and Lebanon are reasonable requests intended to strengthen regional security,” Baghaei stated.
The disagreement immediately affected global markets. On May 11, 2026, oil prices rose by 4%, reaching $105.50 per barrel.
Since Iran moved to restrict movement through the Strait of Hormuz, fuel prices have fluctuated depending on the level of tensions between Washington and Tehran.
Whenever both sides appeared close to an agreement, prices dropped. When negotiations collapsed or tensions increased, prices surged again.
For example, on April 30, 2026, oil prices jumped by 7%, surpassing $126 per barrel for the first time since 2022, when the Russia-Ukraine war began.
However, on May 6, oil prices fell sharply after reports suggested the United States and Iran were close to reaching a ceasefire agreement that could end the conflict, which has lasted for more than two months.
At that time, the price of crude oil dropped to $97 per barrel, down from $108 earlier that morning.
