Oil prices rose on Monday as tensions between the United States and Iran showed no signs of easing, while global stock markets delivered a mixed performance amid lingering uncertainty.
Hopes for progress in ending the eight-week conflict were dampened after Donald Trump cancelled a planned diplomatic trip for peace talks over the weekend. The negotiations, which were expected to take place in Pakistan, had been viewed as a potential breakthrough.
Speaking on Fox News, Trump dismissed the need for continued discussions, saying there was no point “sitting around talking about nothing.” He added that the United States held a strong negotiating position and would not engage in unproductive travel.
However, the president revealed that Iran responded quickly with a revised proposal shortly after the talks were called off.
“They gave us a paper that should have been better and — interestingly — immediately, when I cancelled it, within 10 minutes, we got a new paper that was much better,” he said, without providing further details.
Despite the development, uncertainty remains over whether diplomacy will resume. Trump told reporters that cancelling the talks did not necessarily signal a return to full-scale hostilities.
Earlier indications had already suggested fragile prospects for dialogue. Iranian state media reported that Foreign Minister Abbas Araghchi had no immediate plans to meet US officials, with Islamabad expected to act as an intermediary for proposals.
According to reports cited by Axios, Tehran has offered to reopen the strategically vital Strait of Hormuz — a passage that handles roughly a fifth of the world’s oil and gas supply — while postponing nuclear negotiations.
The waterway has become a central point of contention, with Washington demanding unrestricted shipping access and Iran criticizing US restrictions on its ports.
In a sign of intensifying diplomatic activity, Araghchi arrived in Saint Petersburg on Monday for talks with Vladimir Putin, following earlier visits to Pakistan and Oman as part of ongoing regional efforts to defuse the crisis.
Oil markets responded to the uncertainty, with prices climbing more than one percent. Analysts warn that the upward trend could accelerate if tensions escalate further.
Fawad Razaqzada of Forex.com said the risk of a sharper spike remains if the situation deteriorates into open conflict. He noted that as long as shipping through the Strait of Hormuz remains constrained, prices are likely to stay elevated, with a potential move beyond $110 per barrel.
Meanwhile, global stock markets showed mixed signals. Asian markets such as Tokyo, Seoul, and Taipei posted strong gains, driven largely by optimism in technology stocks following upbeat revenue forecasts from Intel.
Other markets, including Shanghai and Jakarta, also recorded gains, while Sydney, Singapore, and Manila declined. Hong Kong traded flat during the session.
The mixed performance followed a strong close on Wall Street last week, where the S&P 500 and Nasdaq reached fresh record highs.
Investors are now turning their attention to a busy week of corporate earnings, with major US technology firms — including Alphabet, Meta, Microsoft, Amazon, and Apple — set to report results.
Market participants are also watching the upcoming policy meeting of the Federal Reserve, where officials are widely expected to hold interest rates steady.
With geopolitical risks still high and diplomatic progress uncertain, analysts say markets are likely to remain volatile in the days ahead.
