Brent crude oil surges past $90 as US-Iran talks in Pakistan stall

Brent crude oil surged above USD 90/barrel amid uncertainty over US-Iran peace talks in Pakistan. The anticipated talks have not materialized, with Iran denying it sent a delegation, fueling market volatility and concerns over geopolitical tensions.

Brent crude oil prices surged above USD 90 per barrel amid rising uncertainty over the expected second round of peace talks between the United States and Iran, which were anticipated to take place in Pakistan.

Uncertainty Surrounds Anticipated Talks

According to reports, delegations from the United States and Iran were expected to arrive in Pakistan on Tuesday for discussions, signalling a potential diplomatic breakthrough in the ongoing tensions. However, the anticipated talks have not materialized so far, adding to market concerns and volatility in global energy prices.

The uncertainty deepened after indications emerged that key officials had not yet departed for the talks. Iran on Tuesday denied that any delegation has travelled to Islamabad for the second round of peace talks with the United States aimed at achieving a complete halt in the hostilities in West Asia.

According to Iranian state media, IRNA, citing diplomatic sources, no delegation from Iran has been dispatched to Islamabad "so far", dismissing recent reports. According to sources cited by CNN, it remains unclear when US Vice President JD Vance will depart for Pakistan, if at all. A White House official told CNN that "additional policy meetings are taking place at the White House in which the Vice President will participate", suggesting that discussions on the next steps are still underway.

Oil Prices and Market Impact

Crude oil markets reacted sharply to the lack of clarity, with Brent prices climbing above USD 90 per barrel as investors factored in the risk of prolonged geopolitical tensions in West Asia. The region remains critical to global oil supply, and any disruption or escalation tends to have a direct impact on prices.

Earlier, US President Donald Trump had issued a strong warning, stating that there could be severe repercussions if a deal is not reached. He cautioned about the possibility of attacks on Iranian energy and civil infrastructure, further heightening concerns in the market. A two-week ceasefire was announced between the US and Iran on April 8.

The expected talks in Pakistan were seen as a crucial step towards easing tensions and stabilising the region. Market participants had been hopeful that progress in negotiations could lead to a cooling of crude prices, which have remained elevated due to geopolitical risks. However, the delay in the arrival of delegations and the lack of confirmation on the talks have dampened expectations of a near-term resolution.

The uncertainty has prompted traders to build in a higher risk premium, pushing oil prices upward. With the situation still evolving, global markets are closely watching any developments related to the proposed talks. The surge in oil prices comes at a time when geopolitical tensions continue to remain elevated, keeping energy markets on edge and reinforcing concerns over supply disruptions. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)