Oil rises as Iran-U.S. deadlocked peace talks fan fears of extended supply disruption
The tanker Callisto remains anchored at Sultan Qaboos Port in Muscat, Oman, on March 12, 2026, as traffic decreases in the Strait of Hormuz amid the US-Israeli conflict with Iran.
Benoît Tessier | Reuters
Oil prices rose on Monday as a stalemate in Iran-US peace talks fueled fears of prolonged supply shortages and experts pointed to stockpiles at a record low.
International comparison Brent crude oil July futures contracts rose 1.73% to $110.93 per barrel. WE West Texas Intermediate Futures It rose by 1.52% to $107.24 in June per barrel.
US President Donald Trump’s warning to Iran over the weekend indicates that the deadlock between Washington and Tehran over the peace agreement and the reopening of the Strait of Hormuz could lead to the resumption of armed conflict.
Trump said this Real Social “TIME IS OF THE ESSENCE!” he posted on Sunday, saying “The Clock is Ticking for Iran and they better act FAST or there will be nothing left of them.” he added.
Brent crude oil
While a fragile ceasefire was reached in April, tensions between Iran and the United States continue with Tehran keeping the Hormuz waterway largely closed, while the Trump administration continues to blockade Iranian ports.
Before the war, the strait saw almost a fifth of the world’s oil and gas supply flowing through it.
In its latest monthly update, the International Energy Agency warned that global oil stocks are being depleted at a record pace due to the Strait of Hormuz remaining closed. “The rapid narrowing of buffers due to ongoing disruptions could be a harbinger of future price increases,” the IEA said.
If oil demand remains the same each month, inventories will approach an all-time low of 7.6 billion barrels by the end of May, according to a report published last week by Swiss bank UBS.
—CNBC’s Garrett Downs and Spencer Kimball contributed to the report.
