Oil Prices Rise as U.S.–Iran Talks Stall
Oil prices moved higher on Monday as negotiations between the United States and Iran remained at a standstill, keeping restrictions on crude flows through the Strait of Hormuz in place and tightening global supply expectations.
Brent crude futures climbed 2.5% to $107.92 per barrel, while U.S. West Texas Intermediate (WTI) crude rose 2.1% to $96.38 per barrel as of 05:55 ET (09:55 GMT).
Iran Proposal Offers Limited Hope
Investors are closely monitoring reports that Iran has presented a new proposal to the U.S. aimed at reopening the Strait of Hormuz and ending the conflict. The proposal also suggests delaying discussions on Iran’s nuclear program to a later stage.
However, this condition is expected to face resistance from Washington, which has consistently demanded that Iran halt its nuclear activities and surrender enriched uranium as part of any agreement. Tehran has largely rejected these terms, while the current state of its nuclear program remains uncertain following U.S. strikes in 2025.
Ongoing Dispute Over Key Demands
The U.S. has repeatedly insisted that the Strait of Hormuz must be reopened before meaningful peace talks can proceed. In contrast, Iran has called for the removal of U.S. naval restrictions on its ports, highlighting the deep divide between the two sides.
Talks Collapse as Tensions Persist
Diplomatic efforts suffered another setback over the weekend. Donald Trump canceled a planned visit by U.S. officials to Pakistan for renewed discussions, shortly after Iranian representatives departed from Islamabad.
Despite a ceasefire extension earlier in April, both sides remain far apart on key issues, prolonging uncertainty in global energy markets.
Hormuz Disruptions Keep Supply Tight
Oil shipments through the Strait of Hormuz—one of the world’s most critical energy transit routes—showed little sign of recovery. The situation has intensified concerns over supply shortages, particularly after U.S. Treasury Secretary Scott Bessent indicated that the U.S. would not renew a waiver allowing purchases of Russian and Iranian oil currently at sea.
Previously, Washington had temporarily permitted these purchases to offset disruptions caused by the conflict.
Strait of Hormuz Remains a Key Risk
Iran has effectively restricted access to the Strait of Hormuz since late February in response to joint U.S.-Israeli military actions. The ongoing blockade threatens nearly 20% of global crude oil supply, keeping markets on edge and supporting higher prices.
