U.S.-Iran talks stall, reshaping energy markets. Negotiations between Washington and Tehran hit a roadblock as President Trump cancelled envoy plans, citing internal Iranian confusion. Despite setbacks, Iran proposed reopening the Strait of Hormuz and ending the war, with discussions potentially continuing via phone. Oil markets responded immediately, with Brent crude rising to $106.55 and U.S. crude to $95.23 per barrel. Goldman Sachs now forecasts Brent staying elevated at $90 by late 2026, up from previous $80 estimates, citing persistent Persian Gulf disruptions. Global inventories are drawing at record pace, creating sustained supply tightness. Experts warn that prolonged strait closure could trigger demand destruction as prices remain elevated, fundamentally reshaping global energy economics.
