Iran Negotiations Break Down, Sending Oil Prices Soaring

Oil prices surged on Thursday as Iran negotiations broke down, sending Brent crude up 2% to $89.70 per barrel.

The failure of discussions involving Iran led to a shift in the geopolitical premium, which had diminished over the previous three sessions.

Traders were anticipating that diplomatic efforts would enhance Gulf supply flows, but that expectation lost momentum late Thursday.

The news lowered hopes for immediate sanctions relief and added difficulty to attempts to stabilize movement in the Strait of Hormuz.