Oil prices fall after report of breakthrough in US-Iran talks

Oil prices surged after the United States launched new military strikes in Iran, targeting a strategic port and raising fears over the security of a vital global oil chokepoint [1]. The U.S. Central Command (Centcom) said its forces struck a military site in Bandar Abbas and shot down four Iranian drones near the Strait of Hormuz [1]. The global oil benchmark Brent crude rose 3.75% to $97.83 (£73.15) a barrel, while U.S.-traded crude was 4% higher at $92.22 [1]. The attacks occurred despite an ongoing ceasefire between Tehran and Washington, which are engaged in talks to end a three-month conflict that has effectively closed the strait [1]. Approximately one-fifth of the world's oil and liquefied natural gas supplies typically pass through this waterway [1]. This conflict is part of a broader war that began on February 28, 2026, when the U.S. and Israel launched airstrikes on Iran, targeting military sites and assassinating officials, including Supreme Leader Ali Khamenei [2]. Iran responded by closing the Strait of Hormuz and launching missile and drone strikes on Israel, U.S. bases, and allied Arab nations [2]. The hostilities followed a period of failed negotiations; on April 12, 2025, the U.S. and Iran began talks aimed at a nuclear peace agreement, but Israel launched strikes after a U.S.-imposed 60-day deadline passed without a deal [3]. The two nations have had no formal diplomatic relations since 1980, with relations severely strained since the 1979 Iranian Revolution [4]. Global energy prices have been volatile since the war began, with Brent crude briefly surging to around $120 a barrel after trading near $70 beforehand [1]. Iran condemned the latest U.S. strikes as "a grave violation of the ceasefire" and vowed a response [1].