Oil prices surged sharply on Monday after Iranian state-affiliated media reported that Tehran would suspend negotiations with the United States and move to fully block the Strait of Hormuz, a critical global energy route.
West Texas Intermediate crude rose nearly 8% to more than $94 per barrel, while Brent crude climbed almost 7% to above $97. According to Tasnim News Agency, Iran will not resume talks with Washington until Israel halts military operations in Gaza and Lebanon and withdraws from Lebanese territory.
🔥 Iran stops negotiations with U.S., vows to 'completely' block Strait of Hormuz --Oil prices leapt more than 7% higher following Tasnim's report --Iranian negotiators will stop exchanging messages with the U.S. through intermediaries, and Tehran will move to fully close the… pic.twitter.com/xRiOsCrNxt
— CLG News (@legitgov) June 1, 2026
The report said Tehran also plans to block the Strait of Hormuz and potentially expand pressure to the Bab el-Mandeb Strait, another key maritime trade corridor. The developments renewed concerns over global oil supplies as fighting involving Iran, the United States, Israel and Hezbollah continues despite a fragile ceasefire.
President Donald Trump maintained that Iran still wants a deal and expressed confidence negotiations would succeed. However, analysts warned that a collapse in diplomacy could send oil prices dramatically higher, while a comprehensive agreement could push prices back toward pre-conflict levels.
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