Iran halts negotiations with the US amid escalating Israeli attacks, raising risks of supply disruptions in key oil transit straits.
West Texas Intermediate crude jumped $7.02 to $94.35 after Iran’s negotiators ceased communication with the US, marking the most severe setback to the ceasefire yet. The breakdown follows unrelenting Israeli military actions in Lebanon, which Iran has condemned as a violation of the agreement.
Prior to the report, oil prices had stabilized near $87 as markets awaited progress in US-Iran talks. Global inventories have been declining, with Exxon and Chevron executives warning of potential shortages. The Strait of Hormuz and Bab el-Mandeb Strait, critical chokepoints for oil shipments, now face heightened risks of disruption.
Iran’s allies in Yemen have threatened to “take action” in Bab el-Mandeb, though specifics remain unclear. The oil market’s reaction reflects growing skepticism over the ceasefire’s durability and the potential for broader conflict to disrupt supply chains.