Brent rose by more than 6% due to a report of a breakdown in Iran-US talks

Oil prices rose sharply after Iran's state-run Tasnim news agency reported that the Islamic republic is immediately terminating negotiations with the United States due to intensified fighting in Lebanon. In addition, Tasnim reports, Iran has decided to completely close the Strait of Hormuz and activate other routes, including the Bab-El-Mandeb Strait.

The cost of July futures for North American WTI crude oil jumped by almost 7.5%, crossing the $93 per barrel mark. August contracts for the benchmark Mark Brent rose by 6.3% and are trading at about $97 per barrel.

At the opening of trading on June 1, the main U.S. stock indices went into negative territory, the Dow Jones at the time of publication of this text is down the most - by 0.3%.

Over the weekend, the United States and Iran exchanged new strikes, while Israel expanded its ground operation in Lebanon - against the Hezbollah group, writes CNBC. This is the largest-scale breakthrough deep into the country in the last quarter of a century, Bloomberg reports. Tehran called the intensified military action a violation of the ceasefire: the country insists that the agreement should apply to all fighting in the region, including Lebanon.

According to Bloomberg data as of Ma 30, at least a quarter of the ships blocked since the beginning of the conflict, which do not belong to Iran, have already managed to get out of the Strait of Hormuz. At the same time, some of them crossed the danger zone with turned off satellite transponders, which indicates a possible underestimation of the real traffic, the agency notes.

It reported that shipping companies are now contacting the U.S. military for navigational advice, and in one instance, suspicious Iranian speedboats approaching the convoy were driven back by helicopters that suddenly appeared.

This article was AI-translated and verified by a human editor