Global oil prices rise sharply after Iran suspends US talks amid Lebanon attacks, Hormuz uncertainty, and renewed Middle East tensions.
Global oil prices have climbed sharply after Iran temporarily suspended indirect peace talks with the United States through mediators, citing anger over continued Israeli attacks on Lebanon.
The latest escalation has pushed the Middle East back toward a dangerous war footing, with markets reacting strongly to renewed uncertainty over energy supplies and the future reopening of the strategically vital Strait of Hormuz.
The main drivers behind the price surge include the exchange of attacks between American and Iranian forces over the weekend, along with growing fears that restrictions affecting the Strait of Hormuz could remain in place longer than expected.
Iran’s Tasnim news agency, issuing a statement through the social media platform X, said Iran had decided to suspend message exchanges and discussions with the United States because of Israel’s continued airstrikes inside Lebanon.
The statement also said the Lebanon crisis had been included as a precondition in ceasefire-related agreements, prompting Tehran to halt the indirect dialogue process.
Against this tense geopolitical background, crude oil prices in the world market recorded a significant jump.
WTI crude oil rose by 6.5% to US$ 93.03 per barrel, while Brent crude oil increased by 5.5% to US$ 96.13 per barrel.
The two sides had been holding discussions for seven weeks in an effort to reach a 60-day understanding agreement covering Iran’s nuclear programme, sanctions relief, and the removal of navigation blockages in the Strait of Hormuz.
US President Donald Trump also stated in an interview with Fox News last Saturday that both sides were very close to reaching a good agreement. However, he also indicated that a confrontational situation could emerge again if a final agreement could not be reached.
Financial analysts warn that the lack of progress in negotiations, combined with the escalation of regional attacks, could prolong restrictions on the Strait of Hormuz, through which a large share of global energy supplies passes.
With global oil reserves already falling rapidly, analysts caution that if the strait remains closed for an extended period, there is a serious risk of further oil price increases in the weeks ahead.
