Oil Prices Climb On Stalled Peace Talks

(RTTNews) - Oil prices climbed on Monday, extending last week's rally amid little progress in peace talks between the U.S. and Iran.

Brent crude futures traded 2.4 percent higher at $107.88 a barrel as the conflict entered its ninth week. WTI crude futures were up more than 2 percent at $96.33.

The Strait of Hormuz remains effectively closed since February 28 after efforts to restart peace talks broke down over the weekend.

U.S. President Trump has instructed negotiators to suspend discussions, while Iran said it would not engage in "imposed negotiations under threats or blockade."

After abruptly cancelling the planned envoy trip to Pakistan for peace talks, U.S. President Donald Trump indicated that the Iran war will end soon and the U.S. will be victorious.

In an interview on Fox News, Trump claimed that Iran's oil infrastructure could explode in about three days because of mechanical issues exacerbated by the U.S. blockade on its vessels.

According to Axios, Iran has offered the U.S. a new proposal to reopen the Strait of Hormuz and end the war, with nuclear negotiations postponed for a later stage.

Trump is expected to hold a Situation Room meeting with his top national security and foreign policy team later today to discuss potential next steps.

Tehran rejected direct talks with the U.S. under pressure, with Iranian President Masoud Pezeshkian reiterating that the country will not engage in "imposed negotiations under threats or blockade."

Analysts say that even if the Strait reopens, it could take months for oil flows to normalize.

Investors also looked ahead to interest rate decisions by top central banks, including the U.S. Federal Reserve, the European Central Bank, the Bank of Japan and the Bank of England.