EXPLAINER
Brent crude rises amid a continuing deadlock as Trump describes Iran’s response as ‘totally unacceptable’.
Published On 11 May 2026
Diplomatic efforts to forge a peace deal between the United States and Iran appear to have hit a wall, with each side accusing the other of making unreasonable demands, even as continuing tensions in the Strait of Hormuz are sending oil prices to new highs.
The US-Israel war on Iran entered its 73rd day on Monday. Late on Sunday, US President Donald Trump flatly rejected Iran’s latest proposal to end the war without giving any reason. Days after the US floated an offer in the hopes of reopening negotiations, Iran on Sunday released a response focused on ending the war on all fronts, especially in Lebanon.
Oil prices climbed after Trump’s latest comments, with the international benchmark Brent crude up 2.69 percent to $104.01 a barrel by 23:36 GMT on Sunday.
Tehran’s proposal included ending the naval blockade and lifting US and international sanctions, while preserving Iran’s control over its nuclear programme and foreign policy — the issues Washington cited when launching the war.
Trump called Iran’s response to Washington’s offer “totally unacceptable”, while Iranian state media said the US plan amounted to “Iran’s surrender to Trump’s greed”.
On Sunday, the United Arab Emirates said it intercepted two drones coming from Iran, while Qatar condemned a drone attack in its waters on a cargo ship coming from Abu Dhabi. Kuwait said its air defences had dealt with hostile drones that entered its airspace.
Here is what we know about what’s been happening in the past 24 hours:
In Iran
- Iran executed a man, Erfan Shakourzadeh, 29, convicted of spying for US and Israeli intelligence services, the judiciary’s Mizan news outlet reported on Monday. It said Shakourzadeh worked at a scientific organisation involved in satellite activities and had shared classified scientific information with foreign intelligence services. He was arrested last year.
War diplomacy
- EU foreign ministers meet in Brussels: Foreign ministers of European Union nations are meeting in the Belgian capital to discuss the war on Iran as well as the Ukraine war.
- Trump-Xi meeting: Trump is set to arrive in Beijing on Wednesday evening to discuss the war on Iran and other issues with his Chinese counterpart, Xi Jinping.
In the US
- Surveys show that the war is unpopular with US voters, who are facing sharply higher petrol prices less than six months before midterm elections that will determine whether Trump’s Republican Party retains control of Congress.
In Lebanon
- Israel is carrying out air raids on the towns of Kfar Tebnit and Choukine, according to Al Jazeera Arabic, despite a US-brokered ceasefire announced on April 16.
- Two Lebanese medics and a civilian were killed in an Israeli attack on emergency response centres in Bint Jbeil.
- The Israeli military has announced the death of Alexander Glovanyov, 47, an army driver. He was killed in combat near the border with Lebanon.
Global economy
- Oil prices up: Oil prices rose by more than $4 a barrel on Monday following news of the continued stalemate that leaves the narrow Strait of Hormuz largely closed. Before the war began on February 28, the waterway carried one-fifth of the world’s oil and liquefied natural gas flows, and has emerged as one of the central pressure points in the war.
- Tankers transit the strait: While traffic through the Strait of Hormuz is at a trickle compared with pre-war times, shipping data from Kpler and LSEG showed three tankers laden with crude exited the waterway last week, with their trackers switched off to avoid Iranian attack.
- Dollar gains: The US dollar advanced for a second day against its major peers in Asian trade on Monday, supported by strong jobs data and safe-haven demand driven by a shaky ceasefire.
- Gold falls: Gold prices fell on Monday, as a lack of progress in US-Iran peace negotiations pushed oil prices higher, fuelling concerns that elevated inflation could keep interest rates higher for longer.
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