Global energy markets lurched higher on Monday after the second round of US-Iran peace negotiations was suspended yet again. Brent crude jumped nearly 4%, crossing the $109-per-barrel threshold — a painful milestone for consumers worldwide.
President Trump announced Saturday that Washington had cancelled plans to send a negotiating team to Pakistan for talks with Iranian officials. With the Strait of Hormuz — through which roughly one-fifth of the world’s crude oil and liquefied natural gas flows — effectively closed due to the ongoing conflict, markets see little relief ahead.
The human cost in Iran itself is staggering. The governor of Tehran revealed Monday that the capital has lost up to 80 million liters (approximately 21 million gallons) of stored fuel following the destruction of oil tanks earlier this year in the US-Israeli air campaign. Fuel consumption in the city has dropped roughly 50% due to reduced traffic and increased use of public transit. European analysts estimate the energy shock has already inflicted a €27 billion blow on the continent’s economy.
