{"id":678157,"date":"2026-06-01T16:30:41","date_gmt":"2026-06-01T16:30:41","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/678157\/"},"modified":"2026-06-01T16:30:41","modified_gmt":"2026-06-01T16:30:41","slug":"oil-prices-jump-after-us-iran-talks-collapse-erasing-declines","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/678157\/","title":{"rendered":"Oil prices jump after US-Iran talks collapse, erasing declines"},"content":{"rendered":"

The price of oil rose sharply on Monday, after Iranian government-aligned media reported<\/a> that the country was cutting off talks with the United States to end the ongoing war.<\/p>\n

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U.S. crude oil soared as much as 8.5% to nearly $95 per barrel, an increase of almost $8. International Brent crude climbed as much as 7.3% to more than $97 per barrel, a $6 spike.<\/p>\n

Heating oil, a proxy for jet fuel, also rose 7%, while wholesale gas prices rose 4%. <\/p>\n

As a result of of the most recent decline in oil prices, the cost of retail gasoline was down $0.24 Monday from this year\u2019s peak. Still, gas prices remain higher by 44% on average, than they were before the war.<\/p>\n

Government bond yields, which heavily influence consumer borrowing rates, also jumped alongside energy prices. <\/p>\n

The 10-year U.S. government Treasury yield rose from 4.4% to 4.51%. The 30-year Treasury yield increased from 4.97% to 5.02%. <\/p>\n

Shorter term bonds, such as the two and five year Treasuries rose even more sharply.<\/p>\n

Monday\u2019s market moves essentially put oil prices back to levels from mid-May, before it saw two weeks of declines as administration officials continued to suggest that some kind of deal with Iran to end the war was within reach.<\/p>\n

Now, as the war enters its fourth month, Tehran is reportedly suspending talks and \u201cthe exchange of texts through mediators\u201d to protest Israel\u2019s expanding offensive in Lebanon. <\/p>\n

Iran also said it was \u201cdetermined to consider the complete closure of the Strait of Hormuz and the activation of other fronts including the Bab el Mandeb Strait,\u201d a critical commercial waterway off the coast of Yemen.<\/p>\n

Investors on edge<\/p>\n

\u201cThe (largely) closed Strait of Hormuz remains the focus for commodity market observers,\u201d said HSBC strategists in a note on Monday morning. <\/p>\n

\u201cCommodity markets have, so far, absorbed the shock better than some of the worst-case scenarios, reflecting high inventories before the conflict and rapid shifts to redirect commodity trade,\u201d they added. <\/p>\n

\u201cHowever, the longer the Strait of Hormuz remains closed, the more stocks will be run down and at some point they may reach critical functional lows, which could see sharper (non-linear) price rises and genuine shortages.\u201d<\/p>\n

For most of May, daily ship traffic through the Strait of Hormuz remained the single digits, according to data<\/a> from S&P Global Market Intelligence.<\/p>\n

U.S. stocks also fell slightly on Monday after the latest headlines about the Iran war, but their declines were cushioned by renewed momentum in AI stocks, following a series of product announcements from Nvidia overnight.<\/p>\n

However, the Russell 2000 index, which tracks smaller companies and whose largest constituent is worth only $70 billion, fell 1% in morning trading. <\/p>\n

The disparity between more mainstream indexes, such as the S&P 500 and Nasdaq Composite, and the Russell 2000 illustrates the bifurcation in markets between the indexes that are buoyed by large, AI-fueled companies and those that aren\u2019t. <\/p>\n

Internationally, stocks saw more significant widespread selling Monday, with benchmark indexes in France, the U.K. and Italy falling around 1%. The pan-European Stoxx 600 fell 1.1%. <\/p>\n","protected":false},"excerpt":{"rendered":"The price of oil rose sharply on Monday, after Iranian government-aligned media reported that the country was cutting…\n","protected":false},"author":2,"featured_media":678158,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[23,3,21,19,22,20,25,24],"class_list":["post-678157","post","type-post","status-publish","format-standard","has-post-thumbnail","category-united-states","tag-america","tag-news","tag-united-states","tag-united-states-of-america","tag-unitedstates","tag-unitedstatesofamerica","tag-us","tag-usa"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/678157","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=678157"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/678157\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/678158"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=678157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=678157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=678157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}