Oil prices rise 3% as Iran war stand-off persists

Oil prices rose sharply after stalled U.S.-Iran talks kept the risk of supply disruption through the Strait of Hormuz in focus.

Reuters reported that Brent crude gained nearly 3% to $111.22 a barrel, while West Texas Intermediate rose to $98.91. The move came as efforts to end the Iran war remained stalled and the Strait of Hormuz stayed largely shut.

The supply route matters because it is one of the world’s most important oil chokepoints. With diplomacy stuck and shipping through the strait still constrained, traders continued to price in a higher risk of disruption.

Bloomberg and AP also reported that the stalled talks were lifting oil and weighing on Asian markets. AP said the geopolitical backdrop was helping push oil higher across the region.

The immediate question for markets is whether negotiations restart and ease the pressure on crude, or whether the stand-off persists long enough to keep supply risk and price volatility elevated.