Oil prices rise as US–Iran talks stall and Hormuz tensions persist

Global oil prices moved higher over the weekend as stalled peace talks between the United States and Iran dampened hopes of a near-term resolution to the conflict.

Brent crude surged more than 2 per cent on Sunday, before easing slightly to trade at around $106.99 per barrel by early Monday, Al Jazeera reported. The gains came after expectations of a second round of ceasefire negotiations between Washington and Tehran faltered.

Despite the geopolitical uncertainty, Asian equity markets opened on a positive note. Japan’s Nikkei 225 rose about 0.9 per cent, while South Korea’s KOSPI advanced 1.5 per cent in early trading.

Diplomatic efforts appeared to lose momentum after US President Donald Trump cancelled a planned visit to Pakistan by envoys Steve Witkoff and Jared Kushner. The decision followed the departure of Iran’s foreign minister Abbas Araghchi from Islamabad before any direct engagement could take place.

Araghchi has since travelled to Russia, arriving in Saint Petersburg for talks with President Vladimir Putin, as Tehran explores alternative diplomatic avenues to break the impasse. His visit follows a brief stop in Oman, highlighting intensified regional consultations.

The uncertainty comes amid a fragile ceasefire between the US and Iran. Trump last week announced an extension of the two-week truce, though no clear timeline has been set for a comprehensive agreement.

Meanwhile, tensions in the Strait of Hormuz continue to disrupt global energy flows. Iranian threats targeting commercial shipping have significantly reduced traffic through the vital waterway, which typically carries around one-fifth of the world’s oil and natural gas supplies.

According to maritime data, only 19 commercial vessels passed through the strait on Saturday, a sharp decline from the pre-conflict average of around 129 daily transits.

Analysts warn that continued disruption in the region could keep oil prices elevated, even as broader financial markets attempt to look past the geopolitical risks.