ABUJA (FN) Oil prices climbed further on Wednesday as peace talks between the United States and Iran stalled, prolonging uncertainty over the war and keeping the Strait of Hormuz largely blocked.
Brent crude rose more than 2 percent to trade at S106.99 per barrel, while West Texas Intermediate advanced toward S97 per barrel before easing slightly. Analysts said the deadlock has intensified supply disruptions, raising fears of inflationary pressures worldwide.
Diplomatic efforts faltered after U.S. President Donald Trump canceled a planned trip by envoys to Pakistan, following Iran’s Foreign Minister Abbas Araghchi’s abrupt departure from Islamabad. Tehran has insisted it will not negotiate under threats, offering instead to reopen the Strait of Hormuz if sanctions are lifted and hostilities end. Araghchi has since traveled to Russia for talks with President Vladimir Putin, seeking alternative mediation channels.
The blockade of the Strait of Hormuz has slashed daily vessel transits from an average of 129 before the war to fewer than 20 last weekend, cutting off shipments of crude oil, natural gas, and fertilizer. The International Energy Agency has described the disruption as the “biggest supply shock in history.” Airlines worldwide are canceling flights due to jet fuel shortages, adding to economic strain.
Despite the oil surge, Asian markets showed resilience, with Japan’s Nikkei 225 and South Korea’s KOSPI opening higher. Still, experts warn prolonged disruption could trigger a global inflation crisis, especially in energy-dependent economies. “The Strait is still very much under siege… we’re in this purgatory where it’s just stalemated,” said Mona Yacoubian of the Center for Strategic and International Studies.
With nuclear talks postponed and both sides unwilling to compromise, the likelihood of a breakthrough remains slim. Traders expect oil prices to consolidate above $100 in the short term, while governments brace for ripple effects across global markets.
