Oil prices jump on report U.S.-Iran nuclear talks are collapsing
Tankers dock at the Phillips 66 Freeport Terminal in Freeport, Texas, USA, on Friday, January 16, 2026.
Mark Felix | Bloomberg | Getty Images
Crude oil prices rose nearly 3% on Wednesday following a report that planned talks between the United States and Iran were on the verge of collapse.
US crude oil Oil rose $1.80, or 2.9%, to $65.01 a barrel at 12:45 a.m. ET. Global benchmark Brent It rose $1.88, or 2.8%, to $69.21 per barrel.
The movement in oil prices came later axios It was reported that Iran and the USA could not agree on the location of the talks planned to be held on Friday.
The USA and Iran agreed to meet in Istanbul with the participation of other Middle Eastern countries as observers. But two unnamed US officials told Axios that Tehran wanted to change the format to a bilateral meeting in Oman.
The United States considered the change but ultimately rejected it, officials said. They said the Iranians were not willing to return to the original format in Istanbul.
Officials told Axios that talks could continue this week or next week if Tehran accepts the original plan for the meeting.
The reported breakdown in talks came after the US military said on Tuesday it had shot down an Iranian drone that approached the USS Abraham Lincoln aircraft carrier. Iranian gunboats also attempted to board a US merchant ship in the Strait of Hormuz, according to US Central Command.
President Donald Trump has threatened to launch a military attack on Iran if it does not accept a deal on its nuclear program.
