Oil prices rose more than one percent on Monday while equity markets posted mixed results, as diplomatic efforts to end the eight‑week war between the United States and Iran stalled after President Donald Trump cancelled a planned envoy‑level peace mission over the weekend.
Trump told Fox News that further “18‑hour flights” for talks were unnecessary, saying the United States held “all the cards” and could be contacted by Tehran at any time. He added that Iran had submitted a revised proposal within ten minutes of the cancellation, describing the new paper as “much better” but offering no further details.
The cancellation has not signalled an immediate return to hostilities, according to the president, who said “we haven’t thought about it yet.” Nevertheless, Iranian state television reported that Foreign Minister Abbas Araghchi had no plans to meet U.S. officials and that Islamabad would continue to serve as an intermediary for proposals.
Sources cited by Axios indicated Tehran had offered to reopen the Strait of Hormuz – a chokepoint through which roughly one‑fifth of global oil and gas passes – while deferring nuclear discussions to a later stage. The United States, in turn, has insisted that Iranian vessels be allowed free passage through the waterway.
Araghchi travelled to Saint Petersburg for talks with Russian President Vladimir Putin after recent visits to Islamabad and Oman, underscoring Tehran’s active regional diplomatic agenda.
In the commodities market, West Texas Intermediate crude climbed 1.1 % to $95.44 a barrel and Brent crude rose 1.3 % to $106.66, reflecting lingering concerns about shipping constraints in the Strait of Hormuz. Forex analyst Fawad Razaqzada of Forex.com warned that any further escalation could trigger a sharper spike, adding that as long as the waterway remains partially blocked, prices are likely to stay elevated, with a move beyond $110 a barrel possible if a credible breakthrough does not emerge.
Asian equity indices showed divergent trends. Japan’s Nikkei 225 advanced 1.5 % to 60,584.37, while South Korea, Taiwan and Shanghai posted modest gains. By contrast, markets in Sydney, Singapore and Manila slipped, and Hong Kong’s Hang Seng remained flat. The mixed performance followed record‑high closes for the U.S. S&P 500 and Nasdaq on Friday, amid anticipation of earnings reports from major technology firms – Alphabet, Meta, Microsoft, Amazon and Apple – and a Federal Reserve policy meeting expected to leave interest rates unchanged.
Key figures at 02:30 GMT:
– WTI crude + 1.1 % at $95.44/bbl
– Brent + 1.3 % at $106.66/bbl
– Nikkei + 1.5 % at 60,584.37
– Hang Seng flat at 25,982.57
– Shanghai Composite + 0.2 % at 4,087.55
– Euro/USD + 0.0008 to 1.1725
– Pound/USD + 0.0004 to 1.3534
– Yen/USD ‑ 0.10 to 159.32
The developments highlight the fragile link between geopolitical negotiations and global energy markets, with traders and investors closely monitoring diplomatic moves for further price signals.
