(RTTNews) - Oil prices rallied on Monday after weekend negotiations between the United States and Iran aimed at ending six weeks of war concluded without an agreement.
"They have chosen not to accept our terms," U.S. Vice President JD Vance said in a brief news conference but left open the possibility that terms could still be reached.
Iran said that "unreasonable U.S. demands" prevented the progress of the negotiations.
While both countries indicated that negotiations may continue, media reports suggest that sharp disagreements remain over nuclear commitments, Strait of Hormuz control, financial reparations, and ongoing Israeli attacks in Lebanon.
Brent crude prices jumped nearly 8 percent to around $103 a barrel while WTI crude futures for May delivery were up 8.3 percent at $104.57.
The failure of peace talks in Islamabad amid unresolved disputes over Iran's nuclear program raised concerns that the global energy crisis will deepen.
U.S. President Donald Trump has ordered blocking all ships trying to enter or leave the Strait of Hormuz, heightening fears of a prolonged conflict and disruptions to key energy supplies.
Trump announced that the United States Navy will block 'all maritime traffic entering and exiting Iranian ports' starting on Monday. "It's going to be all or none and that's the way it is," the president said.
Iran's navy chief asserted that the country is prepared to counter any military action and will not be intimidated by what it called "imaginary plans."
Meanwhile, ahead of his scheduled visit to Beijing next month, Trump on Sunday threatened China with a 50 percent new tariff if Beijing provides military support to Iran during the U.S.-Israeli war.
Later, he made an unexpected pitch to China, offering to supply oil at competitive rates.
Elsewhere, Saudi Arabia has announced the restoration of full oil pumping capacity through its East-West pipeline to around seven million barrels a day, following recent attacks during the U.S.-Israel conflict with Iran.
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