US Oil Prices Rise Amid Uncertainty Over Iran Peace Talks

US-Iran Tensions Spark Oil Price Surge

Oil prices have increased by over 7% following a series of developments related to tensions between the US and Iran. The price surge occurred after US President Donald Trump announced that US forces had seized an Iranian-flagged cargo vessel attempting to evade the US blockade of Iran’s ports.

Reports from the UK Maritime Trade Operations (UKMTO) Centre indicated that two vessels were attacked while transiting the Strait of Hormuz, with Iranian gunboats firing on a tanker and an “unknown projectile” striking a container ship. The UKMTO stated that the attacks occurred on Saturday.

Trump also announced plans for a second round of ceasefire talks between US and Iranian officials in Pakistan, which was later confirmed by Iranian state news outlet IRNA as not participating in the talks due to the US blockade and what it described as “excessive demands” and “unrealistic expectations”.

The two-week ceasefire between the US and Iran is set to expire on Wednesday if an extension cannot be agreed upon. The ongoing tensions have led to a surge in fuel prices worldwide, prompting governments to tap emergency supplies and implement energy-saving measures.

As of 02:05 GMT, Brent crude futures stood at $94.69 per barrel, up from $90.40 on Friday. Asian stock markets opened higher on Monday, with Japan’s Nikkei 225 rising over 1% and South Korea’s KOSPI gaining about 1.3%.

Source: Al Jazeera