Oil Prices Jump as US-Iran Deadlock Rattles Global Markets

Global oil prices surged while stock markets retreated after renewed tensions between the United States and Iran deepened concerns over energy supplies and regional stability.

Brent crude climbed more than 3 percent, rising above $107 per barrel, while US West Texas Intermediate crude also posted strong gains as hopes for a breakthrough in US-Iran talks faded.

Investor sentiment weakened across Gulf and European markets, with several major stock indexes closing lower amid fears the deadlock could prolong disruptions in the Strait of Hormuz — one of the world’s most critical oil shipping routes.

US President Donald Trump reportedly dismissed Tehran’s latest response to a proposed peace framework, calling Iran’s demands “totally unacceptable.” Iran, meanwhile, insisted on conditions including the lifting of restrictions on oil exports and an end to military pressure in the region.

The standoff has heightened fears of tighter global oil supplies, especially as disruptions around the Strait of Hormuz continue to affect shipments. Analysts warn that prolonged instability could fuel inflation and increase pressure on global economies already facing uncertain growth prospects.

Markets across Saudi Arabia, Dubai, Abu Dhabi, and Qatar all recorded losses as investors reacted cautiously to the worsening geopolitical situation.