Oil Climbs As US–Iran Talks Stall Over Hormuz

By Staff, Agencies

Oil prices climbed on Tuesday after US–Iran negotiations hit an impasse, heightening concerns over escalating regional conflict and potential disruptions near the Strait of Hormuz.

Markets reacted after US President Donald Trump dismissed Iran’s latest proposal, warning that the fragile ceasefire was now “unbelievably weak”.

The collapse in diplomatic momentum renewed fears over instability in one of the world’s most critical energy corridors, where tanker traffic has remained severely disrupted throughout the 10-week war.

The international benchmark Brent crude climbed one percent during Asian trading hours, reaching $105 per barrel, while US benchmark West Texas Intermediate [WTI] also gained one percent to approach $99 per barrel.

The continued tensions around the Strait of Hormuz, a key route for global oil shipments, have kept traders focused on the risk of prolonged supply disruptions.

Precious metals also surged amid uncertainty, with silver jumping more than eight percent to $87 an ounce after weeks of sustained gains.

Despite rising energy prices, broader financial markets remained relatively subdued as investors adopted a cautious wait-and-see approach.

Analysts noted that traders appeared reluctant to react aggressively without clear indications of a wider military escalation between Washington and Tehran.

The cautious market response suggests investors still believe the war may remain contained despite the collapse of recent diplomatic efforts.

US equities ended Monday’s trading session modestly higher, with gains in artificial intelligence-related stocks helping offset concerns linked to rising oil prices and Middle East instability.

The mixed market reaction reflects growing uncertainty over how long the war and disruptions in global energy markets may continue, especially as diplomatic channels between Washington and Tehran appear increasingly strained.

 Trump rejected Iran’s response to a US proposal for renewed talks, calling it “unacceptable” and dampening hopes for a breakthrough. Tehran had demanded sanctions relief, restored oil export freedom, and an end to economic pressure measures as conditions for any agreement.

Energy markets remain under strain, with Saudi Aramco’s CEO warning the crisis has effectively removed about one billion barrels from global supply over the past two months.

Shipping disruptions in the Strait of Hormuz persist, as some tankers reportedly disable tracking amid security risks, fueling fears of a prolonged energy shock.