Oil Surges 3.5% as US-Iran Peace Talks Collapse!

Crude oil prices jumped more than 3.5% after both the United States and Iran rejected proposals aimed at ending their ongoing conflict, reigniting fears of a sustained supply disruption in one of the world's most strategically sensitive energy corridors.

The breakdown in negotiations removes a near-term de-escalation scenario that markets had been quietly pricing in. With diplomatic off-ramps now off the table, traders are repricing geopolitical risk premium back into crude — a move that ripples directly into inflation expectations, energy-sector equities, and broader risk sentiment.

A prolonged standoff between Washington and Tehran raises the stakes for global oil supply chains, particularly through the Strait of Hormuz, through which roughly 20% of the world's seaborne crude passes.