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Energy Markets · Geopolitics · Middle East · Oil Prices
Brent crude futures surged above $80.11 per barrel as investors reacted to renewed geopolitical risks following the cancellation of planned US-Iran talks and fresh Israeli attacks in Lebanon, despite improving shipping conditions in the Strait of Hormuz.
The Swiss Foreign Ministry confirmed the discussion planned at Burgenstock was canceled after the White House announced US Vice President JD Vance would not depart for Switzerland, citing unresolved logistical details for expected technical talks with Iran. This cancellation raised concerns regarding the next phase of diplomacy after the US-Iran interim peace agreement, which previously ended a prolonged conflict and triggered significant supply disruptions.
Concurrently, Lebanon’s National News Agency reported Israeli bombing and artillery attacks on Nabatieh city and surrounding towns killed at least 24 people and wounded several others. However, these geopolitical risks were partially offset by signs of normalization in energy flows.
The US Central Command lifted restrictions on traffic to and from Iranian ports and coastal waters, while the Joint Maritime Information Center advised vessels to follow a route closer to Oman’s coastline to reduce mine risks. Tankers carrying previously stranded crude began exiting the waterway, and Kuwait announced it would begin increasing production.
This improved shipping outlook limited oil’s gains, with prices erasing nearly all increases recorded since the Middle East conflict began in late February and remaining on course for a sharp weekly decline.
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