Oil prices rise as the Iran war drags on, but US stocks hang near their records – BNN Bloomberg

Oil prices rose on May 11, 2026, as U.S. President Donald Trump rejected the latest proposal from Iran to end the ongoing war, though U.S. Equity markets continued to climb toward record highs despite the geopolitical volatility.

Brent crude oil climbed 2.9 percent to settle at US$104.21 on May 11, 2026. The price increase followed a statement from President Trump that the ceasefire between the United States and Iran was on life support.

The conflict has already caused a significant increase in energy costs, pushing the price of a barrel of Brent up from approximately US$70. This surge is largely attributed to the closure of the Strait of Hormuz, which has left oil tankers stranded in the Persian Gulf and prevented the delivery of crude to global customers.

The rejection of the ceasefire proposal occurs as President Trump prepares for a trip to China during the week of May 11, 2026. He may urge Chinese President Xi Jinping to pressure Iran into making concessions, as China remains the largest buyer of sanctioned crude oil from Iran.

While energy markets reacted to the prolonged conflict, Wall Street showed resilience. The S&P 500 rose 0.2 percent on May 11, 2026, moving up from its previous all-time high established on May 8, 2026. The Dow Jones Industrial Average gained 95 points, or 0.2 percent, and the Nasdaq composite also saw gains.

Market analysts suggest that U.S. Stocks are maintaining their trajectory based on hopes that high oil prices will not persist indefinitely. Corporate earnings have exceeded analyst expectations, and indicators suggest the U.S. Economy remains stable despite external pressures.

The economic impact of the war has been felt through a surge of inflation across the global economy. In the United States, households are experiencing financial pressure due to the combined effects of expensive gasoline and tariffs.

In addition to Brent crude, West Texas Intermediate (WTI) prices also saw an upward trend. On May 11, 2026, WTI was priced at 98.55.

The divergence between rising energy costs and record-breaking stock indices reflects a market currently balancing wartime economic resilience against the immediate costs of disrupted supply chains in the Middle East.