Oil prices rise as US-Iran peace talks stall

Oil prices increased on Monday morning in Asia following the cancellation of plans for a second round of peace talks between the United States and Iran.

Brent crude, the global benchmark, rose by 2.2% to $107.70 a barrel, while US-traded crude increased by 2.1% to $96.40.

The US President announced on Saturday that Washington had called off sending a negotiation team to Pakistan to meet with Iranian counterparts.

He cited internal confusion and infighting within Iran's leadership as reasons for the cancellation.

No casualties or direct disruptions were reported due to the cancellation, but the move has intensified concerns over regional stability and energy supply.

The Strait of Hormuz, a critical transit route for around a fifth of the world's crude oil and liquefied natural gas, remains a focal point amid ongoing tensions.

Iranian Foreign Minister Seyed Abbas Araghchi stated that discussions with Oman are ongoing to ensure safe transit through the strait, emphasizing the importance of regional cooperation for the benefit of neighboring countries and the global community.

This development is significant as it highlights the challenges in advancing diplomatic efforts between the US and Iran, with implications for global energy markets and regional security.

The US President also remarked that the US holds leverage in the situation, suggesting that Iran could initiate talks if desired.

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