Oil Prices Rise As US Iran Talks Stall

WASHINGTON: (Web Desk) – Oil prices moved higher on Tuesday after negotiations between the United States and Iran showed little progress, increasing fears about the future of energy supplies through the Strait of Hormuz. Investors reacted cautiously as the conflict entered its tenth week, though wider financial markets remained relatively stable.

US President Donald Trump dismissed Iran’s latest response to Washington’s proposal, calling it “garbage” and warning that the already fragile ceasefire was becoming dangerously unstable. His remarks weakened hopes for a diplomatic breakthrough and renewed concerns over possible disruptions in global oil shipments.

The continued deadlock kept pressure on energy markets. Brent crude climbed around one percent to more than $105 per barrel during Asian trading, while US benchmark West Texas Intermediate rose to nearly $100 a barrel. Precious metals also rallied strongly, with silver jumping over eight percent amid growing investor demand for safe-haven assets.

Trump Warns Middle East Ceasefire Near Total Collapse

Despite rising commodity prices, global stock markets showed mixed reactions as traders avoided making aggressive moves while monitoring developments in the Middle East. Analysts noted that markets remain in a wait-and-watch phase because Trump has not yet signaled any immediate military escalation.

US stocks ended Monday slightly higher, supported by strong interest in artificial intelligence companies, which helped offset worries over energy inflation. Meanwhile, South Korea’s Kospi index initially gained before reversing course later in the session.

Market experts warned that oil prices could rise significantly if disruptions in the Strait of Hormuz continue into the coming weeks. Analysts said many investors are still assuming the key shipping route will gradually reopen before the end of June, but any prolonged closure could damage the global economy and tighten financial conditions worldwide.

Attention also turned to Asia as US Treasury Secretary Scott Bessent arrived in Japan for discussions on currency and trade issues. The visit comes ahead of Trump’s expected trip to China, where business leaders including Elon Musk and Tim Cook are expected to join meetings aimed at strengthening trade cooperation.

The conflict with Iran is expected to dominate Trump’s talks with Chinese President Xi Jinping, particularly because China remains one of the largest buyers of Iranian oil. Tehran is also closely monitoring the Beijing meetings as China continues behind-the-scenes diplomatic efforts to reduce tensions.