Global oil prices surged on Monday after renewed tensions between the United States and Iran derailed plans for further peace negotiations, raising concerns over energy supply disruptions.
The international benchmark Brent crude climbed more than 2% to trade above $107 per barrel, while West Texas Intermediate also rose nearly 2%, reflecting growing anxiety in global energy markets.
The rise in prices comes as uncertainty deepens around the Strait of Hormuz, a crucial maritime route through which a significant portion of the world’s oil supply passes. Reports indicate that Iran’s Revolutionary Guard recently boarded two cargo ships near the strait, further escalating tensions in the region.
Efforts to resume diplomatic talks between Tehran and Washington appear to have stalled once again. Although Iran reportedly proposed reopening the Strait of Hormuz and ending the conflict, it also suggested postponing nuclear negotiations, creating additional complications in the diplomatic process.
US President Donald Trump added to the uncertainty by cancelling plans to send envoys, including Steve Witkoff and Jared Kushner, to Islamabad for discussions with Iranian officials. In a public statement, Trump criticized Iran’s leadership, describing it as disorganized and insisting that the United States held the upper hand in any potential negotiations.
Meanwhile, Iran’s Foreign Minister Abbas Araghchi visited Islamabad over the weekend but did not meet with US representatives. Iranian officials later confirmed that no direct talks between the two countries were currently scheduled.
The ongoing standoff has kept global markets on edge, with investors closely monitoring developments in the region. Any prolonged disruption in the Strait of Hormuz could significantly impact global oil supplies, pushing prices even higher and adding pressure to inflation worldwide.
Despite the uncertainty, Iran’s reported willingness to reopen the key shipping route suggests that diplomatic options may still remain on the table, although a clear breakthrough appears distant for now.
