Brent Crude Surges Past $107 Amid Collapsed U.S.-Iran Diplomatic Talks

Oil markets rallied sharply Sunday following the breakdown of planned peace negotiations between Washington and Tehran, with tensions escalating in one of the world's most critical energy chokepoints.

Energy futures climbed approximately 2% as diplomatic efforts between the United States and Iran failed to materialize for a second consecutive time. The geopolitical tensions were underscored by reports that Iran's Revolutionary Guard intercepted two cargo vessels transiting the strategically vital Strait of Hormuz.

Market Response

Brent crude, the international oil benchmark, advanced 2% to reach $107.89 per barrel as of 6:27 p.m. Eastern Time. Meanwhile, West Texas Intermediate crude also gained more than 2%, closing at $96.63 per barrel.

Diplomatic Breakdown

President Donald Trump announced Saturday that he had rescinded plans to dispatch senior envoys Steve Witkoff and Jared Kushner to Islamabad for talks with Iranian representatives. In a statement posted to Truth Social, Trump cited inefficiency and internal discord within Iran's political structure as reasons for the decision.

"Too much time wasted on traveling, too much work! Besides which, there is tremendous infighting and confusion within their 'leadership.' Nobody knows who is in charge, including them," Trump wrote, adding: "Also, we have all the cards; they have none! If they want to talk, all they have to do is call!!!"

Iranian Foreign Minister Abbas Araghchi traveled to the Pakistani capital over the weekend but held discussions exclusively with Pakistani officials before departing. A representative from Iran's Foreign Ministry confirmed the absence of U.S.-Iran engagement, with spokesperson Esmaeil Baqaei stating late Friday: "No meeting is planned to take place between Iran and the U.S."