Oil Surges Over 7% as Iran Halts U.S. Talks and Threatens Total Hormuz Closure
Russia Bans Jet Fuel Exports as Ukrainian Attacks Cripple Refining What I Cover My focus spans the global energy landscape and the technologies reshaping it, specifically focusing on oil and gas, renewables, and tech-driven market… UPDATED 10:20 EST, MONDAY JUNE 1ST:Oil pricesexploded higher Monday, with U.S.
crude leaping more than 7% after Iran’s state-affiliated media reported that Tehran is cutting off diplomatic channels with Washington and moving to fully block the strategic Strait of Hormuz.
The sudden breakdown in diplomacy shattered fragile market optimism, reversing earlier trading dynamics and sending energy markets into a tailspin.
WTI crude surged 7.69% to approach $93 per barrel, whileBrent crude jumped 6.62%, trading well above $95 per barrelas investors reacted to the severe escalation in geopolitical risk.
According to a translatedreportfrom Iran’s state-affiliated Tasnim news agency on the social media site Telegram, Iranian negotiators will immediately stop exchanging messages with the U.S.
The dramatic pivot is reportedly a direct retaliation for ongoing ceasefire violations, specifically homing in on Israel’s military operations against the Iran-backed militia Hezbollah in Lebanon.
“No dialogue will take place until Israel fully withdraws from occupied areas in Lebanon and stops all attacks in both Lebanon and Gaza,” Tasnim reported.
The report added that the "resistance front and Iran have resolved to completely block the Strait of Hormuz and activate other fronts including the Bab al-Mandeb Strait, in order to punish the Zionists and their supporters.” This comes as Trump reportedly requested stronger language on Iran’s nuclear commitments and more explicit provisions governing the reopening of Hormuz, indicating that negotiations are not nearing completion, as suggested by Washington.
CNN reported that the president reviewed the draft agreement with advisers before sending it back for changes, with discussions expected to continue for at least another week.
The latest proposal reportedly includes a 60-day cessation of hostilities, provisions to reopen the Strait of Hormuz, and a framework for future nuclear negotiations.
However, major sticking points remain, including the fate of Iran’s highly enriched uranium stockpile, the scope of sanctions relief, and the guarantees Tehran is demanding before signing a final agreement.
Hormuz remains the most important energy chokepoint in the world, carrying roughly one-fifth of global oil trade and a significant share of LNG exports from Gulf producers.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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