Oil jumps stocks fall after US-Iran talks collapse

ISLAMABAD: (Web Desk) – Global markets reacted sharply after tensions between the United States and Iran intensified. Oil prices surged while stock markets declined following the collapse of peace negotiations and a blockade announcement by Donald Trump targeting the crucial Strait of Hormuz.

Talks held in Islamabad over the weekend ended without agreement, with the US delegation led by JD Vance blaming Iran for refusing to abandon its nuclear ambitions. Iranian officials, however, criticized Washington for making excessive demands and shifting its conditions during negotiations.

The breakdown in diplomacy dashed hopes of ending the six-week conflict, fueling concerns over global energy supplies. Oil prices, which had briefly eased after a ceasefire, jumped nearly eight percent, crossing the $100-per-barrel mark once again.

Stock markets across Asia fell in response to the uncertainty, with major indexes in Tokyo, Hong Kong, and Seoul recording notable losses. Other regional markets, including Shanghai and Sydney, also closed lower as investor confidence weakened.

Iran US negotiations collapse leaving region tense and uncertain

Trump stated that the aim of the blockade is to secure shipping routes and remove potential threats in the Strait of Hormuz, a vital passage responsible for roughly one-fifth of global oil and gas transport. He warned of strong retaliation against any hostile actions targeting US forces or commercial vessels.

Iran responded with defiance, asserting control over the strait. Shahram Irani dismissed the US threats as “laughable,” while the Revolutionary Guards cautioned that any aggression would trigger severe consequences.

Iran’s Foreign Minister Abbas Araghchi said both sides had come close to an agreement but ultimately failed due to what he described as unrealistic US demands.

Analysts warn that the blockade could significantly escalate the conflict rather than ease tensions. Meanwhile, ongoing instability in the Middle East, including the Israel-Hezbollah situation, continues to add pressure on global markets.