-- Crude oil prices climbed Monday after efforts to revive US-Iran peace talks in Pakistan collapsed over the weekend, effectively erasing hopes for a near-term resumption of energy flows through the Strait of Hormuz.
The Brent futures contract gained 2.1% to $107.57 per barrel. Murban closed at $103.59 on April 24 and was not trading as of the time of publishing this oil price update.
"Oil is trading stronger this morning after attempts to get US-Iran peace talks back on track broke down, erasing hopes for a resumption of energy flows through the Strait of Hormuz anytime soon," ING analysts said.
The diplomatic cooling began when President Donald Trump abruptly cancelled a planned trip to Islamabad for top envoys Steve Witkoff and Jared Kushner, reportedly stating there was no point "sitting around talking about nothing."
This withdrawal coincided with the arrival of Iranian Foreign Minister Abbas Araghchi in Pakistan, though no direct engagement occurred.
The subsequent impact on supply is stark. Bloomberg ship tracking data revealed that only two chemical tankers and one LPG carrier left the Persian Gulf on Friday.
Meanwhile ANZ analysts noted that the US blockade continues to sideline about 1.7 million barrels per day of Iranian exports.
Despite the breakdown, some market volatility was tempered by reports from Axios and ING suggesting Iran has submitted a fresh proposal via Pakistani mediators.
This offer reportedly proposes reopening the waterway and de-escalating the conflict while delaying nuclear negotiations to a later stage.
"However, there are newswire reports this morning that Iran has offered the US a new proposal to reopen the Strait of Hormuz, while delaying nuclear negotiations for a later stage," ING noted.