Oil prices surged and stocks sank on Monday after US-Iran peace talks fell apart and Donald Trump announced a blockade of the strategic Strait of Hormuz, adding to fears for energy supplies from the Middle East.
Negotiations in Islamabad at the weekend fell apart with the US delegation — led by Vice President JD Vance — blaming Iran’s refusal to give up its nuclear programme and Tehran hitting out at “maximalism, shifting goalposts, and blockade”.
The news dealt a blow to hopes for an end to the six-week conflict, which has sent crude prices soaring, pushing inflation up and sending shivers through the global economy.
Oil prices — which tumbled last week after the United States and Iran agreed to a ceasefire — jumped more than eight percent at one point Monday, with both contracts topping $100 a barrel.
Equities fell, with Tokyo, Hong Kong, Seoul, Sydney, Mumbai, Singapore, Taipei and Jakarta well down, though Shanghai edged up.
London, Paris and Frankfurt opened on the back foot.
Shares in Hungary jumped more than three percent after conservative Peter Magyar won a thumping majority in parliamentary elections Sunday, ousting Prime Minister Viktor Orban, who had ruled for 16 years.
