MW Global oil prices jump 5% to above $95 a barrel after Iran reportedly suspends talks with U.S. and fully closes Strait of Hormuz
By Isabel Wang and Nora Redmond
U.S. and global oil benchmarks are on pace for their largest one-day gains in at least a month
Oil prices were surging on the first trading day of June after Iran reportedly suspended all exchange of negotiation messages with the U.S. due to continued Israeli cease-fire violations in Lebanon, dashing hopes for an imminent peace deal between Washington and Tehran to end the war in the Middle East.
The West Texas Intermediate crude contract for July delivery (CL.1) (CLN26) was popping 5.8% to $92.49 a barrel, on pace for its largest one-day gain since April 29. Brent crude's August contract (BRN00) (BRNQ26) was up 4.9% to $95.60 a barrel, on track for its best day since May 4, according to FactSet data.
The moves followed reports from Iran's state-affiliated media outlet Tasnim on Monday that Iranian negotiators will stop exchanging messages with the U.S. through intermediaries and that Tehran will move to fully close the Strait of Hormuz in retaliation for ongoing cease-fire violations.
Israeli Prime Minister Benjamin Netanyahu overnight ordered strikes on the southern suburbs of Beirut, the capital Lebanon.
U.S. Central Command also announced early Monday morning that it launched "self-defense strikes" on drone sites in Iran's southern region, close to the Strait of Hormuz.
CENTCOM said the "measured and deliberate strikes" were in retaliation for a U.S. drone being shot down by Iranian authorities over international waters, according to a post on X.
Iran's Islamic Revolutionary Guard Corps said it targeted a U.S. air base that it claimed had been used to attack an Iranian communications tower, according to a Fars News Agency report. Kuwait's Foreign Ministry denounced what it referred to as "heinous Iranian attacks" on its territory.
The escalation in attacks over the weekend dashed optimism for investors who had been hoping for an imminent peace deal to end the war in Iran. U.S. and Iranian negotiators last week reached an agreement on a 60-day memorandum of understanding to extend the cease-fire and launch negotiations on Iran's nuclear program, but President Donald Trump has yet to give his final approval.
"We've never felt closer to a deal but potentially never felt closer to it all falling apart with isolated strikes becoming more frequent," Jim Reid, head of macroeconomic research and thematic strategy at Deutsche Bank, wrote in a note on Monday.
"It's hard to imagine remaining in limbo for much longer given that if the Strait of Hormuz remains closed into mid-summer it will at some point likely lead to a non-linear tipping point of economic stress," he said.
Axios reported on Saturday that Trump had requested several changes to the deal discussed with Iranian negotiators on Friday, including what to do about Tehran's nuclear concessions.
-Isabel Wang -Nora Redmond
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June 01, 2026 10:06 ET (14:06 GMT)
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