WTI Surges to $101, Brent $106 as Trump Rejects Iran Proposal, Hormuz Fears Intensify

Crude oil prices rallied to WTI $101/bbl and Brent $106/bbl after President Trump deemed Iran's peace proposal 'totally unacceptable,' heightening concerns over prolonged Strait of Hormuz closure and supply disruptions. Early May 6 hopes for a U.S.-Iran deal evaporated with May 7 developments including China's defiance of U.S. sanctions, DOJ/CFTC probes of $2.6B suspicious bearish trades, OFAC sanctions on Iraq's Deputy Oil Minister, and U.S. strikes described as 'light punishment.' Escalations continued on May 10 with Iran's sovereignty claim over Hormuz and U.S. gas tax suspension talks at ~$5/gal, culminating May 11 in Saudi Aramco's 1B barrels lost estimate, falling Polymarket reopening odds, and India's fuel-saving measures fueling the surge past prior peaks.