Oil prices soar by 5 percent to $95 as Iran halts communication with the US
Crude prices surge amid rising tensions in the Middle East following Iran’s decision to suspend talks with the US, heightening concerns over potential supply disruptions and conflict.
Oil prices surged on Monday following Iran’s suspension of all negotiation messages with the U.S. This decision came in response to ongoing Israeli ceasefire violations in Lebanon, effectively diminishing hopes for a swift peace deal between Washington and Tehran aimed at resolving the conflict in the Middle East.
The West Texas Intermediate (WTI) crude contract for July delivery increased by 5.8 percent to $92.49 a barrel, marking its largest one-day gain since April 29. Meanwhile, Brent crude’s August contract rose by 4.9 percent to $95.60 a barrel, poised for its best day since May 4.
The actions came after reports from Iran’s state-affiliated media outlet Tasnimon on Monday, indicating that Iranian negotiators will cease communication with the U.S. via intermediaries. Additionally, Tehran plans to fully close the Strait of Hormuz in response to ongoing ceasefire violations.
Reports indicate that Israeli Prime Minister Benjamin Netanyahu has ordered strikes on the southern suburbs of Beirut, the capital of Lebanon, overnight. U.S. Central Command announced early Monday morning that it conducted “self-defense strikes” on drone sites located in Iran’s southern region, near the Strait of Hormuz.
CENTCOM stated that the “measured and deliberate strikes” were a response to the downing of a U.S. drone by Iranian authorities over international waters, as noted in a post on X.
However, the development led Iran to halt all indirect discussions with the US and declare its intention to seek a “complete closure of the Strait of Hormuz.” Iran accused Israel of “continuing crimes” in Lebanon and asserted that any violation of the ceasefire on one front would invalidate the truce overall.
IRGC-affiliated news agency Tasnim reported that the two sides continue to be at an impasse regarding a deal to extend the ceasefire and bring an end to the war.
“Given that Lebanon was a prerequisite for the ceasefire and that this ceasefire has now been breached on all fronts, including Lebanon, the Iranian negotiating team is halting dialogues and the exchange of texts through mediators,” reported Tasnim.
“Additionally, Iran and the Axis of Resistance have decided to work towards the total closure of the Strait of Hormuz and engage other fronts, such as the Bab al-Mandab Strait, in their efforts to retaliate against Israel and its allies,” Tasnim stated in a separate post on X.
According to the news agency, Tehran has also called for a complete withdrawal of Israeli forces from Lebanon.
In response, US President Donald Trump stated that discussions with Iran were ongoing, even though Iranian state media had reported earlier in the day that Tehran had halted talks due to Israel’s actions in Lebanon.
“Talks are ongoing, moving swiftly, with the Islamic Republic of Iran,” Trump stated on Truth Social. In the past, Trump and his administration have indicated that they often encounter contradictory messages from Iran, both in public and in private communications.
Shortly before his assurance that discussions were ongoing, Trump had also shared on Truth Social that he had a fruitful conversation with Benjamin Netanyahu, during which the Israeli prime minister stated he would not be deploying troops to Beirut.
It remains uncertain whether the halt on mediated exchanges has also temporarily shut down all discussions or if certain channels of communication are still accessible at this point.
With the move, the Islamic Republic has intensified what some refer to as maximalist demands for a peace deal with the US, while also broadening its tactical front by imposing new terms for any agreement and presenting itself as a party that perceives it has an advantage in the conflict.
Iranian Foreign Minister Abbas Araghchi stated earlier on Monday that a violation on one front of the ceasefire constitutes a violation “on all fronts” and emphasized that the US-Iran ceasefire is “unequivocally a ceasefire on all fronts, including in Lebanon.”
“A violation on one front constitutes a violation of the ceasefire across all fronts.” “The US and Israel bear responsibility for the outcomes of any violations,” Araghchi stated on X.
Mohammad Bagher Ghalibaf, the speaker of Iran’s parliament and chief negotiator, has accused the United States of violating the ceasefire by maintaining its military blockade of Iranian ports and failing to halt the Israeli offensive in Lebanon.
