Stocks edge up ahead of US-China meeting; oil rallies on US-Iran stalemate US President Donald Trump is due to meet Chinese President Xi Jinping this week, with the Middle East expected to be a key part of the agenda. NEW YORK: US equity indexes inched ahead to record closing highs while the dollar edged higher on Monday (May 11), as investors awaited a meeting between US President Donald Trump and Chinese President Xi Jinping. Oil prices rallied as Trump said the US ceasefire with Iran was "on life support", after dismissing Tehran's response to a US peace proposal as "stupid". His remarks stoked worries that the 10-week-old conflict will drag on, paralysing shipping through the Strait of Hormuz. Iran's response had focused on ending the war on all fronts and Tehran demanded compensation for war damage, emphasised its sovereignty over the Strait of Hormuz, and called on the US to end its naval blockade, guarantee no further attacks, lift sanctions and remove a ban on Iranian oil sales. But, with the Middle East expected to be a key part of the agenda this week at Trump and Xi's first face-to-face talks in more than six months, Scott Wren, senior global market strategist at Wells Fargo Investment Institute, said that investors were cautiously hopeful for some progress toward peace. "It's all about the strait and when it's going to open," said Wren. "There's some optimism that China will have some influence in resolving the strait issue." On Wall Street, the S&P 500 rose 13.91 points, or 0.19 per cent to 7,412.84 and the Nasdaq Composite rose 27.05 points, or 0.10 per cent, to 26,274.13, record closing highs for both. The Dow Jones Industrial Average rose 95.31 points, or 0.19 per cent, to 49,704.47, still shy of its Feb 10 record close. MSCI's gauge of stocks across the globe rose 2.38 points, or 0.22 per cent, to 1,108.01. Earlier the pan-European STOXX 600 index closed up 0.11 per cent. In currencies, the dollar retreated from session highs after Trump's rebuff of Iran's response kept concerns about an extended war intact. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.05 per cent to 97.96, with the euro down 0.06 per cent at US$1.1777. Against the Japanese yen, the dollar strengthened 0.37 per cent to 157.23. Sterling weakened 0.16 per cent to US$1.361 as British Prime Minister Keir Starmer attempted to quell a rebellion within his ruling Labour party following a mauling in last week's local elections. In energy markets, oil prices settled up nearly 3 per cent after Trump's comments fueled supply fears as the Strait of Hormuz stayed largely closed with no clear end in sight for the war. US crude settled up 2.78 per cent, or US$2.65 at US$98.07 a barrel. Brent rose to US$104.21 per barrel, up 2.88 per cent, or US$2.92 for the day. US Treasury yields rose as rising oil prices stoked inflation worries. The yield on benchmark US 10-year notes rose 4.6 basis points to 4.41 per cent, from 4.364 per cent late on Friday. The 30-year bond yield rose 3.6 basis points to 4.9835 per cent. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 5.9 basis points to 3.952 per cent. Gold prices reversed course to rise in volatile trading on Monday, as investors assessed developments in US-Iran diplomacy and waited for key US inflation data due later this week. Spot gold rose 0.44 per cent to US$4,735.39 an ounce. US gold futures rose 0.15 per cent to US$4,727.70 an ounce.
Iranian Official
Iran has firmly asserted its sovereignty over the Strait of Hormuz while demanding an end to the US naval blockade, compensation for war damages from foreign aggression, and the lifting of illegal sanctions that ban Iranian oil sales. Washington's dismissal of Tehran's peace-focused response as inadequate has prolonged the conflict, with US actions threatening regional stability and disrupting shipping routes. As the upcoming Trump-Xi talks loom, Iran's resistance underscores its refusal to yield to external pressures.
Israeli
Israel views the collapsing US-Iran ceasefire as confirmation of Tehran's existential threat, with its proxy networks and demands for Strait of Hormuz control enabling sustained aggression that endangers Israeli survival and global energy lifelines. Defensive necessity requires maintaining the naval blockade and sanctions to prevent Iran from converting any truce into renewed attacks or oil leverage. Hopes pinned on the Trump-Xi talks reflect the urgent need for external pressure to neutralize these Iranian capabilities before they escalate further.
Neutral
US equity indexes closed at record highs and oil prices rose on May 11 amid investor focus on an upcoming meeting between US President Donald Trump and Chinese President Xi Jinping. Trump described the US ceasefire with Iran as on life support after rejecting Iran's response, which sought an end to hostilities, compensation for damages, and the lifting of sanctions and blockades. Strategist Scott Wren stated that any progress on reopening the Strait of Hormuz could depend on China's role in the talks.
Western
US equities reached record highs ahead of President Trump’s meeting with Xi Jinping, where strategic talks aim to secure freedom of navigation through the Strait of Hormuz by neutralizing Iranian threats to global energy routes. Oil prices rallied after Trump described the ceasefire as on life support, citing Tehran’s refusal to accept terms that would end its blockade and provocations. Markets viewed potential Chinese influence as a means to achieve precise diplomatic pressure for de-escalation aligned with Western security interests.
Pro-Peace
As the US-Iran conflict enters its eleventh week with the ceasefire on life support, civilian casualties and humanitarian suffering mount amid naval blockades that paralyze shipping and block vital supplies through the Strait of Hormuz. Iran's demands to end all fighting, secure compensation for war damage, lift sanctions, and guarantee no further attacks highlight the urgent need for genuine diplomacy rather than stalemate. With Trump and Xi set to discuss the crisis, renewed international pressure for a comprehensive peace deal remains the only path to sparing further lives and easing the blockade's devastating costs.
Global South
US markets edged higher ahead of Trump-Xi talks while oil rallied as Washington's faltering ceasefire exposed the breakdown of US-imposed diplomacy in the Gulf. Iran's demands to end the naval blockade, lift sanctions, secure compensation and affirm sovereignty over the Strait of Hormuz highlight resistance to neo-colonial pressure that threatens energy routes vital to Global South economies. Hopes pinned on Beijing reflect deepening multipolar pushback against unilateral Western control of regional conflicts.
Stocks edge up ahead of US-China meeting; oil rallies on US-Iran stalemate US President Donald Trump is due to meet Chinese President Xi Jinping this week, with the Middle East expected to be a key part of the agenda. NEW YORK: US equity indexes inched ahead to record closing hig…
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A tanker identified as the Kaifan was struck by an unknown projectile northeast of Oman’s Limah in the Strait of Hormuz, according to a July 21 report from UK Maritime Trade Operations. No ships were observed transiting the strait that day. Attribution of the strike and links to prior incidents have not been confirmed by the vessel’s owner.
Goldman Sachs has projected Brent crude averaging $80 per barrel in the fourth quarter and $75 in the following year, conditional on reduced Middle East tensions, while noting upside risks from potential shipping disruptions in the Strait of Hormuz or Red Sea.
Brent prices rose above $91 per barrel amid recent U.S.-Iran exchanges and Houthi threats to Saudi shipments before edging lower on Tuesday. A senior Iranian official told Reuters that mediators had proposed a 10-day ceasefire to preserve an interim agreement.
Opening summary: Iran claims attacks on strait of Hormuz ships amid fresh US strikes Welcome to our live coverage of the latest developments in the Middle East crisis. Iran attacked a tanker in the strait of Hormuz early on Tuesday, forcing its crew to abandon the ship, as Yemen’s Iran-backed Houthis announced they were imposing an immediate maritime blockade of Saudi Arabia in the Red Sea after the two sides traded fire last week for the first time in years.
A Houthi official said the Bab al-Mandeb strait – at the southern end of the Red Sea, through which about 12% of the world’s trade usually passes – would be closed to the Saudis in response to the kingdom’s “unjust blockade on Yemenis for over 10 years”.
Saudi Arabia said it would take “all necessary measures to protect its vessels in accordance with international law”. A 10 consecutive night of US airstrikes has not compelled Tehran to loosen its grip on the strait of Hormuz, a vital route for global energy supplies.
But even as Iran’s president said the country had returned “full-scale war”, the Iranian interior minister travelled to Pakistan – a key mediator in the conflict – for talks. In key developments: The latest US strikes came hours after Donald Trump said Iran would pay “many times over” for killing US soldiers after multiple service members were killed in action over the weekend.
A tanker came under attack early Tuesday in the Hormuz strait off Oman, forcing the crew to abandon the vessel, the British military’s United Kingdom Maritime Trade Operations centre said. Iran’s Revolutionary Guards claimed the attack as well as two other attacks on ships in the waterway on Monday.
The US military’s Central Command said its latest airstrikes were to “degrade” Iran’s ability to attack commercial shipping in the strait and included hitting military command centres and missile and drone launch sites. Iranian media reported strikes in parts of the country including Bandar Abbas, Tabriz and Bushehr, home to the country’s only operational civilian nuclear power.
Iran’s launched attacks in response against Bahrain, Kuwait and Jordan, which all host US forces. Oil prices softened after hitting their highest levels in more than a month in the previous session. Brent crude futures eased 0.4% to $88.87 a barrel by 0052 GMT on Tuesday while US West Texas Intermediate crude for September delivery was steady at $82.
47 a barrel. Democrats have seized on the deaths of three US troops killed in Iranian strikes to urge Trump to urgently reverse his resumption of the war with Iran amid widespread anxiety over climbing casualties. The Lebanese army began taking charge of security in three southern villages, the US said, as a deal to secure an Israeli withdrawal from southern Lebanon and the disarmament of Hezbollah faced its first test on the ground.
US forces struck the tanker Settebello in the Gulf of Oman on June 10, killing three Indian crew members when munitions hit the engine room and adjacent areas. Maritime tracking data indicate the vessel had transported Iranian oil under US sanctions for several years and conducted offshore transfers prior to the strike.
The US military described the action as a precision operation, while reports note the ship was stationary at the time.