Oil prices increase following renewed uncertainty in US-Iran peace negotiations. On Monday morning in Asia, Brent crude, the global benchmark, rose by 2.2% to $107.70 a barrel, while US-traded crude increased by 2.1% to $96.40. This rise comes after plans for a second round of peace talks between the US and Iran stalled once again.
Oil prices increase amid stalled US-Iran peace negotiations
US President Donald Trump announced on Saturday that Washington had cancelled plans to send a negotiation team to Pakistan to meet with Iranian counterparts. The cancellation was attributed to concerns over “too much time wasted on travelling” and internal confusion within Tehran’s leadership. President Trump stated that there is “tremendous infighting and confusion” in Iran, adding that “nobody knows who is in charge, including them.”
Trump also emphasized that the US holds significant leverage in the situation, stating, “we have all the cards; they have none! If they want to talk, all they have to do is call.”
Impact on global energy supplies
Global energy supplies have been under pressure since the start of the conflict involving Iran. The Strait of Hormuz, a crucial waterway through which around one-fifth of the world’s crude oil and liquefied natural gas (LNG) typically passes, has been effectively closed following threats from Iran to attack ships. These threats came in retaliation for US and Israeli airstrikes on Iranian targets.
Iranian Foreign Minister Seyed Abbas Araghchi noted ongoing discussions with Oman, a neighboring country along the strait, focusing on “important discussions on bilateral matters and regional developments.” He highlighted that their focus includes ensuring safe transit through the waterway to benefit all neighboring countries and the wider world.
Since President Trump announced an extension of a ceasefire with Tehran last week to allow Iran’s leadership time to present a “unified proposal,” Brent crude prices have risen by more than 10%. However, the recent cancellation of talks has contributed to renewed uncertainty and upward pressure on oil prices.
