Crude oil prices are up 5% and back above $100 U.S. a barrel after Iran rejected holding direct talks with the U.S. aimed at ending the war in the Middle East.
International benchmark Brent crude oil is up 5% and trading at $107.17 U.S. per barrel, while U.S. West Texas Intermediate crude is up 4% at $94.26 U.S. a barrel.
Oil prices are climbing higher after Iranian Foreign Minister Abbas Araghchi told state media that exchanges between the two countries do not mean “negotiations with the U.S.”
Iranian state media reported that officials in the capital of Tehran plan to reject a U.S. ceasefire proposal and continue fighting.
U.S. President Donald Trump continues to insist that the U.S. and Iran are “in negotiations” and that Tehran is eager to make a deal. However, energy markets don’t appear to believe Trump.
At the same time, the Strait of Hormuz where 20% of the world’s crude oil flows remains effectively closed to oil tankers, leading to a build-up of supplies that is causing price spikes.
The situation continues to roil global stock markets, with fears rising of a sharp increase in inflation that will require central banks to raise interest rates later this year.
All three major stock indices in the U.S. are in the red to begin the trading day on March 26.
