Oil and energy prices continue to rise as investors and traders weigh the outcome of the U.S.-Iran standoff. Brent crude rose more than one percent despite an Iranian offer to reopen a key waterway, and later climbed over two percent after Washington and Tehran failed to hold a second round of talks in Pakistan. Uncertainty over a potential de-escalation continues to keep markets on edge.
Hopes for progress during negotiations in Pakistan were dashed on Saturday when President Trump cancelled plans to send a team for talks. Trump stated there was no point in sitting around talking about nothing and informed advisers that he was not satisfied with Iran’s latest proposal to reopen the Strait of Hormuz.
The conflict has seen Tehran largely close the Strait of Hormuz, leaving it almost impassable, while Washington has imposed a blockade of Iran’s ports. Iran had offered to reopen the waterway in exchange for the deferral of nuclear talks, but there remains no sign of progress toward a deal to end the standoff.
Adding to the regional instability, Hezbollah has rejected the Lebanon ceasefire. Traders remain focused on the next steps toward peace talks as the U.S. discusses proposals from Tehran.