Collapse of US-Iran talks heightens fears of prolonged energy shock

The failure of the US and Iran to reach a peace deal after marathon negotiations has put markets on alert for further oil and gas price rises. With large numbers of oil tankers remaining stuck in the Gulf, the US vice-president, JD Vance, blamed the collapse of the talks on Tehran’s refusal to abandon its nuclear weapons programme, while Iranian sources hit back at “excessive” demands from Washington. Oil prices fluctuated wildly last week and fell below $100 a barrel on Wednesday after a two-week ceasefire was announced. They ended the week lower, with Brent crude at $94.26 a barrel, compared with a peak of $119.45 during the war and about $72 a barrel before the conflict began. The war’s impact on the global economy will dominate the International Monetary Fund and World Bank’s spring meetings in Washington, which start on Monday.