Oil Surges Over 7% as Iran Halts U.S. Talks and Threatens Total Hormuz Closure
June 1st, 2026Via: Oil Price:
Oil prices exploded higher Monday, with U.S. crude leaping more than 7% after Iran’s state-affiliated media reported that Tehran is cutting off diplomatic channels with Washington and moving to fully block the strategic Strait of Hormuz.
The sudden breakdown in diplomacy shattered fragile market optimism, reversing earlier trading dynamics and sending energy markets into a tailspin.
WTI crude surged 7.69% to approach $93 per barrel, while Brent crude jumped 6.62%, trading well above $95 per barrel as investors reacted to the severe escalation in geopolitical risk.
According to a translated report from Iran’s state-affiliated Tasnim news agency on the social media site Telegram, Iranian negotiators will immediately stop exchanging messages with the U.S. through intermediaries. The dramatic pivot is reportedly a direct retaliation for ongoing ceasefire violations, specifically homing in on Israel’s military operations against the Iran-backed militia Hezbollah in Lebanon.
“No dialogue will take place until Israel fully withdraws from occupied areas in Lebanon and stops all attacks in both Lebanon and Gaza,” Tasnim reported.
The report added that the “resistance front and Iran have resolved to completely block the Strait of Hormuz and activate other fronts including the Bab al-Mandeb Strait, in order to punish the Zionists and their supporters.”
