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Oil Rises as Markets Weigh Mixed Signals on Peace Talks

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Oil Rises as Markets Weigh Mixed Signals on Peace Talks

Crude oil prices rose Monday amid conflicting reports on the status of US-Iran peace talks.

Brent advanced 4.6% to $95.32 per barrel, while West Texas Intermediate futures were last up 6% at $92.58.

Iran suspended talks with the US in retaliation to Israel's military action in Lebanon, CNBC reported Monday, citing Iranian state-affiliated outlet Tasnim.

Iranian Foreign Minister Seyed Abbas Araghchi said the ceasefire agreement with the US includes Lebanon, and "violation on one front is a violation of the ceasefire on all fronts," according to his post on X.

US President Donald Trump told CNBC on Monday that he did not care if peace talks with Iran were over.

However, Trump said in a post on Truth Social that he spoke to Israeli Prime Minister Benjamin Netanyahu and Iran-backed Hezbollah, with both agreeing to stop the fighting.

In another post, Trump said talks with Iran were continuing "at a rapid pace."

Brent and WTI declined for the month of May as optimism grew around a potential US-Iran peace deal.

"It unfortunately feels like we have moved further away from a conclusion, with Iran commenting mid-Friday that no agreement has been reached, and reports over the weekend indicating that (Trump) has asked to amend the prior framework," Tudor Pickering Holt said in a note. "These shifting conditions alongside continued kinetic skirmishes between the parties are likely to further erode Iranian trust as officials have already cited the fluidity of priorities as a point of friction with Iran making clear that nuclear dialogue is contingent on successful negotiations to end the war and reopen the Strait of Hormuz."

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