Oil prices rise as US-Iran peace talks stall

Asia saw an increase in oil prices on Monday as efforts to resume dialogue between the U.S. and Iran encountered another setback. Brent crude, the international reference price, climbed by 2.2% to $107.70 (£79.66) per barrel, while U.S. crude gained 2.1% to $96.40. This follows the U.S. president’s decision to halt a planned delegation to Pakistan for discussions with Iranian officials.

Global energy markets have faced mounting strain since the start of the Iran war, with the critical Strait of Hormuz waterway disrupted after Iran threatened to target vessels in retaliation for U.S. and Israeli strikes. The strait, which handles roughly one-fifth of the world’s crude oil and liquified natural gas (LNG), remains a focal point of geopolitical tension. Iranian Foreign Minister Seyed Abbas Araghchi emphasized ongoing talks with Oman, a neighboring country bordering the strait, stating that “important discussions on bilateral matters and regional developments” are being conducted to secure safe passage for trade.

“Our focus included ways to ensure safe transit that is to benefit of all dear neighbors and the world. Our neighbors are our priority,” Araghchi shared on social media.

Trump criticized the logistics of the U.S. team’s travel to Islamabad, writing on Truth Social that “too much time wasted on travelling” and “too much work” had been invested in sending representatives. He further noted internal discord within Tehran, claiming, “nobody knows who is in charge, including them.” The president also asserted that “we have all the cards; they have none!” and urged Iran to initiate communication.

Brent crude has surged over 10% since Trump announced last week that he would extend a ceasefire with Tehran, providing its leadership time to submit a “unified proposal.” This development underscores the impact of stalled negotiations on global energy dynamics.