Oil rises as US-Iran peace talks stall

Oil prices rose on Monday morning in Asia after plans for a second round of peace talks between the US and Iran stalled again.

Brent, the global benchmark, rose by 2.2% to $107.70 (£79.66) a barrel, while US-traded crude gwas up by 2.1% at $96.40.

It comes after US President Donald Trump said on Saturday that Washington had cancelled plans to send a team to Pakistan for negotiations with their Iranian counterparts.

Global energy supplies have been under intense pressure since the start of the Iran war as the crucial Strait of Hormuz waterway was effectively closed after Iran threatened to attack ships in retaliation for US and Israeli airstrikes on the country.

Iranian Foreign Minister Seyed Abbas Araghchi said on Sunday that important discussions on bilateral matters and regional developments are ongoing with Oman, its neighbour along the strait.

He posted on social media: our focus included ways to ensure safe transit that is to benefit of all dear neighbors and the world. Our neighbors are our priority.

Around a fifth of the worlds crude oil and liquified natural gas (LNG) usually passes through the Strait of Hormuz.

Trump wrote in a Truth Social post on Saturday that there was too much time wasted on travelling and too much work in sending US representatives to Islamabad.

The president added that there is tremendous infighting and confusion within Tehrans leadership.

Nobody knows who is in charge, including them, he said. Also, we have all the cards; they have none! If they want to talk, all they have to do is call!!!

Brent crude has risen by more than 10% since Trump announced last week that he would extend a ceasefire with Tehran to give its leadership a chance to present a unified proposal.