The deterioration of relations between Washington and Tehran fueled a new surge in oil prices
SANTO DOMINGO – International oil prices registered sharp increases on Monday after negotiations between the United States and Iran showed little progress and uncertainty grew about a possible breakdown in diplomatic efforts to reduce tensions in the Middle East.
The situation unfolds amid an increasingly complex geopolitical scenario, marked by the continuation of Israeli military operations in Lebanon and by persistent differences between Washington and Tehran regarding a possible agreement to reduce the regional conflict.
Brent and WTI register strong gains
According to Reuters reports , Brent crude, the benchmark for Europe and much of the international market, rose 1.9% to US$92.89 per barrel, while West Texas Intermediate (WTI), the US benchmark, advanced 2.4% to US$89.46.
However, as the day progressed and uncertainty about the future of talks between the two countries increased, prices continued to climb.
Data subsequently released and published by The Times of Israel indicated that Brent crude reached a price of over US$95 per barrel, while WTI exceeded US$92, reflecting a more intense reaction from investors to the deteriorating diplomatic outlook.
Iran suspends exchanges with Washington
Pressure on the markets intensified after Iranian media reported on the suspension of exchanges between Tehran and Washington.
According to the Iranian news agency IRNA, the authorities of the Islamic Republic reiterated that any progress toward an understanding with the United States remains conditional on changes in the regional security situation and a cessation of hostilities on fronts where Iran's allies are involved.
They also reported that the government decided to temporarily suspend talks after several days of discussions without concrete results, weakening expectations of reaching an agreement in the short term.
The lack of progress also coincides with the public silence of US President Donald Trump regarding the current state of negotiations, an element that has increased uncertainty among analysts and investors.
The market's fear is a supply disruption
The increases recorded this Monday reflect market fears of possible disruptions to the global oil supply.
Iran occupies a strategic position within the global energy market, and any sign of escalating regional tensions usually translates into immediate movements in crude oil prices.
Reuters reports also consider the potential impact that any disruption to the shipping routes used to transport oil from the Middle East to international markets could have.
Although there has been no actual disruption to supply, the mere risk of tensions continuing to escalate has been enough to generate advance purchases and push prices upward.
Impact on importing economies
Oil prices are closely monitored by importing countries such as the Dominican Republic, where fluctuations in international crude oil prices often directly influence the cost of fuels, the transportation of goods, and some components of inflation.
Markets will remain attentive to any signs of a resumption of diplomatic dialogue or new developments in the Middle East that could alter expectations regarding global oil supply.
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