Global oil prices surged after efforts to restart peace negotiations between United States and Iran broke down once more. Brent Crude jumped nearly 2% to $107.26 per barrel, while US crude gained 1% to $95.40.
The rise followed a decision by Donald Trump to cancel plans to send officials to Pakistan for fresh talks with Iranian representatives.
Energy markets remain strained as conflict continues to disrupt the Strait of Hormuz, a key route for global oil shipments. Iran’s Foreign Minister, Seyed Abbas Araghchi, said discussions with Oman are ongoing to maintain safe passage for regional and global trade. He later traveled to St Petersburg for talks with Vladimir Putin.
Roughly one-fifth of the world’s crude and liquefied natural gas passes through the strait, making the disruption significant. Prices have already climbed over 10% since Trump extended a ceasefire to allow Tehran to propose a unified plan.
Analysts warn prolonged closure could impact supply chains widely. Sophie Huynh noted that shortages may affect everyday goods, while Goh Jing Rong said traders are waiting for clear signs of de-escalation.
Despite tensions, Asian markets showed resilience. Japan’s Nikkei 225 rose 1.7%, while South Korea’s Kospi gained 2.5%, recovering from earlier losses tied to energy concerns.
