Oil prices surge amid US-Iran talks collapse
Photo: Oil prices surge amid US-Iran talks collapse (Getty Images)
Oil prices rose for a third straight day as a peace deal between the United States and Iran remained unsigned, while hostilities in the Persian Gulf resumed, reports Reuters.
Oil prices
Brent crude futures climbed 1% to $94.74 per barrel, marking a third consecutive session of gains.
The increase was driven by stalled peace talks between Washington and Tehran and renewed military incidents in the Persian Gulf.
Negotiations
Last week, the United States and Iran said they had agreed on a preliminary deal to end the war. However, the document has yet to be signed.
"Last week ... the trajectory was towards some sort of MOU and markets were high on the belief that that was coming," said Chris Weston, head of research at Melbourne-based brokerage Pepperstone.
"Things are looking more precarious (now). It does suggest that people are coming back to the negotiating table with less scope to get that done and I think we're seeing some of those bets being unwound," he added.
Strikes and interceptions
The US military said Iran launched missiles at Bahrain, Kuwait, and other targets in the region, with most of them intercepted or failing to reach their targets.
In currency markets, the dollar approached the 160-yen level before stalling, as traders feared Japan could intervene at that threshold. The euro held at $1.1627.
US labor market
Markets are also focused on US employment data. The number of job openings in the United States posted its biggest increase in five years in April, indicating the labor market remains strong.
That has reduced expectations for monetary policy easing. Peter Dragicevich, currency strategist for payments company Corpay in the Asia-Pacific region, believes a strong jobs report could even push the Federal Reserve toward raising interest rates.
"In our view, the pickup in momentum across the US economy over early 2026 could see the U.S. jobs report exceed downbeat consensus forecasts," he said.
"If realised, we think this may bolster the view the U.S. Fed could raise interest rates down the track, which in turn might see the USD strengthen," Dragicevich added.
Markets are already pricing in around 18 basis points of US rate hikes this year.
While oil prices are rising, the technology sector is operating by its own rules. Shares of chipmaker Marvell Technology surged 32.5% after Nvidia founder and CEO Jensen Huang described the company as the next candidate to reach a trillion-dollar valuation.
Stock indexes in Taiwan and Japan hit record highs. Japanese investment company SoftBank overtook Toyota to become Japan's most valuable company.
Meanwhile, Bitcoin fell nearly 10% over three sessions to a two-month low of $66,123. The decline has been partly attributed to share sales by major Bitcoin holder Strategy, as well as investors pulling funds ahead of SpaceX's IPO next week.
US-Iran talks
US President Donald Trump demanded that Iran formally commit in writing to specific concessions regarding its nuclear program as part of a preliminary agreement, after negotiators had previously relied only on verbal assurances.
On June 2, US forces struck an empty oil tanker bound for an Iranian port with a Hellfire missile despite an ongoing blockade. Since April, six vessels have reportedly been disabled in this manner.
On the night of June 3, the United States and Iran exchanged strikes once again despite the existing ceasefire. Iran launched missiles at Kuwait and Bahrain, while the United States carried out retaliatory strikes on Qeshm Island in the Strait of Hormuz.
