Oil Prices Rise, Stocks Mixed As US–Iran War Stalemate Deepens After Trump Cancels Peace Envoy Trip
Oil prices rise, stocks mixed as US–Iran war stalemate deepens after Trump cancels peace envoy trip Oil prices climbed on Monday while global stock markets traded mixed, as the United States and Iran remained locked in a prolonged conflict with no breakthrough in peace talks, following President Donald Trump’s decision to cancel a diplomatic mission aimed at restarting negotiations.
Brent crude and West Texas Intermediate both posted gains as investors reacted to renewed geopolitical uncertainty and tightening supply conditions linked to the ongoing eight-week war between Washington and Tehran. The market reaction followed President Trump’s weekend decision to cancel a planned trip by his special envoys to peace talks, citing lack of progress and accusing negotiators of wasting time in stalled discussions.
Trump reportedly said there was “no point sitting around talking about nothing,” while also insisting that Iran could reach out to the United States if it genuinely wanted an agreement. Despite the cancellation, reports indicate that Iran sent a revised proposal shortly after the decision, though no details were disclosed.
Crude oil prices rose by more than 2% as traders priced in continued supply disruptions and geopolitical risk premiums, particularly concerns around shipping routes such as the Strait of Hormuz, a critical global energy corridor. Analysts say the conflict has already reduced global supply flows, tightening the market and pushing prices higher, with benchmarks approaching multi-week highs.
Equity markets, however, showed a more uneven response. Some Asian indices edged higher, while other global benchmarks fluctuated as investors weighed potential inflation risks from rising energy costs against hopes of eventual diplomatic progress. In the US, futures trading indicated cautious sentiment ahead of a busy week of corporate earnings and central bank signals, with energy price volatility remaining a key concern for investors. The ongoing conflict between the US and Iran has now stretched for about eight weeks, with intermittent ceasefire discussions repeatedly breaking down amid mutual distrust and military escalation.
Key diplomatic channels, including talks mediated through Pakistan, have failed to produce a breakthrough, while tensions around strategic maritime routes continue to affect global energy logistics. With oil markets reacting sharply to every shift in diplomatic signals, analysts warn that continued instability between the US and Iran could sustain elevated energy prices and ongoing volatility across global financial markets in the weeks ahead.
