Stalled peace talks between the U.S. and Iran, along with ongoing tensions in the Strait of Hormuz, have fueled market concerns over prolonged energy disruptions, driving oil prices up more than 2%. Brent crude for June delivery rose 2.4% to $107.86 per barrel, while June West Texas Intermediate crude futures increased 2.3% to $96.55 per barrel.
Analysts at ING stated, "The lack of progress in negotiations means the global crude market is tightening each day, making a repricing and upward trend in oil prices inevitable. Currently, there is no effective alternative supply plan to address the daily shortfall of approximately 1.3 million barrels."
However, media reports earlier on Monday indicated that Iran has submitted a new proposal to the U.S., suggesting the reopening of the Strait of Hormuz, an end to hostilities, and a postponement of nuclear negotiations to a later phase.
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