Global oil prices jumped sharply on Monday while stock markets delivered a mixed performance after peace negotiations between the United States and Iran hit a setback, raising concerns over a possible escalation of conflict in the Middle East.
Image: Al Jazeera
International benchmark Brent crude rose 4.2 percent to settle at $94.98 per barrel, while US West Texas Intermediate (WTI) gained 5.5 percent to close at $92.16 per barrel.
The rally came after Iran’s Tasnim news agency reported that Tehran had suspended talks with Washington through mediators, citing renewed clashes in Lebanon and the breakdown of ceasefire efforts. The development dampened hopes for a diplomatic resolution to regional tensions.
Market analysts said the halt in negotiations increased fears of renewed conflict, particularly after recent exchanges of strikes between the United States and Iran. Tehran has also insisted that any future agreement must address Israel’s military operations in Lebanon.
Later in the day, a potential positive development emerged when the US Embassy in Lebanon announced that Hezbollah had accepted a US proposal for a “mutual cessation of attacks,” raising hopes of reduced tensions on the Lebanon-Israel front.
The conflict has continued to affect global energy markets, particularly after Iran effectively restricted traffic through the Strait of Hormuz following US and Israeli strikes earlier this year. The strategic waterway normally handles around one-fifth of the world’s oil and liquefied natural gas shipments.
Asian markets were mostly higher, with South Korea leading gains as investors continued to pour money into artificial intelligence-related stocks. However, major European stock markets ended the day in negative territory.
Analysts said investors remain hopeful that diplomatic efforts between Washington and Tehran could eventually resume, but concerns over energy supplies and regional stability continue to dominate market sentiment.
Key figures at around 2015 GMT –
Brent North Sea Crude: UP 4.2 percent at $94.98 a barrel
West Texas Intermediate: UP 5.5 percent at $92.16 a barrel
New York – DOW: UP 0.1 percent at 51,078.88 points (close)
New York – S&P 500: UP 0.3 percent at 7,599.96 (close)
New York – Nasdaq Composite: UP 0.4 percent at 27,086.81 (close)
London – FTSE 100: DOWN 0.7 percent at 10,338.95 (close)
Paris – CAC 40: DOWN 0.5 percent at 8,146.59 (close)
Frankfurt – DAX: DOWN 0.4 percent at 25,003.04 (close)
Hong Kong – Hang Seng Index: UP 0.9 percent at 25,398.18 (close)
Tokyo – Nikkei 225: UP 0.9 percent at 66,934.33 (close)
Shanghai – Composite: DOWN 0.3 percent at 4,057.74 (close)
Euro/dollar: DOWN at $1.1632 from $1.1663 on Friday
Pound/dollar: DOWN at $1.3458 from $1.3464
Dollar/yen: UP at 159.67 yen from 159.27 yen
Euro/pound: DOWN at 86.43 pence at from 86.63 pence
