Oil prices rise as US-Iran peace talks stall

Oil prices climbed sharply in Asian markets following the collapse of plans for a second round of peace talks between the United States and Iran. Brent crude rose by 1% to $106.50 a barrel, while US crude increased by 1% to $95.40. The rise came after US President Donald Trump announced the cancellation of a US delegation’s trip to Pakistan intended for negotiations with Iranian officials, citing internal confusion within Tehran’s leadership and logistical challenges. The stalemate has intensified concerns over energy supply disruptions amid ongoing tensions in the Strait of Hormuz. The Strait of Hormuz, a critical chokepoint through which about 20% of the world’s crude oil and liquefied natural gas passes, has been a focal point of the conflict. Iran’s threats to target shipping in retaliation for US and Israeli airstrikes have effectively closed the waterway, putting global energy markets under pressure. Iranian Foreign Minister Seyed Abbas Araghchi indicated ongoing discussions with Oman to ensure safe transit through the strait, emphasizing regional cooperation. Araghchi also traveled to St Petersburg to meet with Russian President Vladimir Putin, signaling Iran’s efforts to seek diplomatic support amid escalating tensions. Despite the recent ceasefire extension announced by Trump last week, which briefly eased fears of conflict escalation, traders remain cautious. Market analysts note that investors are awaiting concrete evidence of a lasting resolution rather than fragile or reversible agreements. The geopolitical uncertainty continues to drive volatility in oil markets, reflecting the broader risks posed by the Iran conflict to global energy security. Meanwhile, major Asian stock markets showed resilience, with Japan’s Nikkei 225 and South Korea’s Kospi indices posting significant gains. These markets had initially suffered due to their heavy reliance on Gulf energy supplies but have rebounded as investors weigh the potential for diplomatic progress against ongoing risks. The situation remains fluid, with energy prices and regional stability closely tied to the evolving diplomatic landscape.