Oil Prices Climb As US–Iran Talks Stall

Oil prices rose on Monday amid stalled negotiations between the United States and Iran, tightening global supply concerns.

Global oil prices climbed sharply on Monday as ongoing tensions linked to the Iran conflict continued to strain energy supplies and disrupt key trade routes. Brent crude, the international benchmark, rose by around 2% to $109.33 per barrel, while US-traded crude also gained 2% to reach $96.78.

The surge comes amid heightened uncertainty over the closure of the Strait of Hormuz, a critical passage through which roughly one-fifth of the world’s crude oil and liquefied natural gas flows. The waterway has effectively been shut due to the conflict, intensifying concerns over global supply shortages and pushing prices upward.

Diplomatic efforts to ease tensions appear to have stalled. Donald Trump said Washington had cancelled plans to send a delegation to Pakistan for talks with Iranian officials, citing internal divisions within Tehran’s leadership. Meanwhile, Seyed Abbas Araghchi confirmed ongoing discussions with Oman aimed at ensuring safe transit through the strait, while also travelling to meet Vladimir Putin in St Petersburg.

Analysts warn the prolonged disruption could have widespread economic consequences. Sophie Huynh of BNP Paribas said the impact could extend far beyond fuel, affecting everyday goods from “bin bags to medicine”.

“I think we’re underestimating the extent of which products could be affected by the oil shortage,” she told the BBC’s Today programme. “We’re not consuming crude, we’re consuming products.” If the strait remains closed for more than a few weeks, the effects will be “really far reaching in terms of supply chain”, she said.

Similarly, economist Goh Jing Rong of Singapore Management University noted that traders are awaiting concrete signs of de-escalation before reacting more strongly.

Financial markets showed mixed responses to the developments. While London’s FTSE 100 dipped slightly in early trading, major Asian indices closed higher, with Japan’s Nikkei 225 and South Korea’s Kospi posting gains. Both markets had initially fallen at the onset of the conflict due to their heavy reliance on Gulf energy supplies but have since rebounded.

Trump wrote in a Truth Social post on Saturday that there was “too much time wasted on travelling” and “too much work” in sending US representatives to Islamabad. The president added that “there is tremendous infighting and confusion” within Tehran’s leadership.

“Nobody knows who is in charge, including them,” he said. “Also, we have all the cards; they have none! If they want to talk, all they have to do is call!!!”

With the Strait of Hormuz remaining a focal point of the crisis, market watchers say the trajectory of oil prices will largely depend on whether the route can be reopened and diplomatic progress achieved in the coming weeks.