Brent Crude Surges Over 2% as US-Iran Talks Fail in Pakistan

Global crude oil prices climbed nearly 2% on Monday after stalled peace talks between the United States and Iran heightened concerns over supply disruptions in the Strait of Hormuz.

Brent crude futures rose $2.16, or 2.05%, to $107.49 a barrel, marking the highest level since April 7, while US West Texas Intermediate (WTI) gained $1.77, or 1.88%, to $96.17 a barrel, according to market data reported by Reuters and cited in multiple financial news outlets.

The price increase followed sharp gains from the previous week, during which Brent and WTI rose nearly 17% and 13%, respectively—their largest weekly increase since the conflict began—driven by escalating tensions and reduced market confidence in diplomatic resolutions.

The stalled negotiations occurred after US President Donald Trump canceled a planned visit to Islamabad by envoys Steve Witkoff and Jared Kushner, even as Iranian Foreign Minister Abbas Araqchi arrived in Pakistan for discussions.

IG market analyst Tony Sycamore commented that the cancellation placed responsibility squarely on Iran, stating, “This move puts the ball squarely back in Iran’s court, and the clock is now ticking loudly,” and warned that Iran could face pressure to reduce output from aging oil fields if storage limits are reached.

Supply concerns intensified as Tehran maintained restrictions on traffic through the Strait of Hormuz, a vital global chokepoint through which approximately one-fifth of the world’s oil flows.

Shipping data from Kpler showed severely limited activity, with only one oil products tanker entering the Gulf on Sunday, underscoring the ongoing disruption to maritime trade in the region.

In response to the tightening supply outlook, Goldman Sachs revised its fourth-quarter oil price forecasts upward, projecting Brent crude to reach $90 per barrel and WTI to reach $83 per barrel.

Market analysts noted that continued disruptions in the Strait of Hormuz, combined with the absence of diplomatic progress, are keeping global oil markets volatile and sensitive to any further geopolitical developments.