The US military announced it will begin blockading all Iranian ports at 1400 GMT Monday, after US-Iran talks in Islamabad collapsed without a deal. JD Vance, Steve Witkoff, and Jared Kushner led the American delegation; Iran's parliament speaker Mohammad Bagher Ghalibaf led Tehran's side. Pakistan, the mediator, called on both parties to honor the two-week ceasefire struck last week, warning a maritime blockade could put it at risk. US Central Command specified the action targets vessels entering or departing Iranian ports on the Arabian Gulf and Gulf of Oman, and will not impede transit through the Strait of Hormuz to or from non-Iranian ports, a narrower scope than Trump's earlier social media post suggested. Iran's nuclear programme was the central sticking point: Vance described Washington's position as its "final and best offer," while Iranian foreign minister Abbas Araghchi attributed the breakdown to "maximalism" and shifting demands. Oil markets reacted immediately, with WTI and Brent both surpassing $100 per barrel on Monday, a roughly eight percent jump. Separately, Israeli strikes in Lebanon continued after the ceasefire announcement, killing hundreds according to Lebanese health authorities, with Lebanese and Israeli officials scheduled for Washington talks Tuesday.
Qatar's foreign ministry said mediators including Qatar, Pakistan, and Oman have reached "very progressive stages" in efforts to end the US-Iran war, pushing Brent crude down more than four percent.
Qatar confirmed it is mediating between the US and Iran but said no direct talks are currently planned. The clarification follows conflicting statements from President Trump, who claimed talks are under way, and Tehran, which denied any dialogue is happening.
Saudi Aramco reported sharply higher second-quarter 2026 profits as the Iran war restricts global oil supply and pushes crude prices up. Other oil supermajors also posted outsized earnings, raising concerns about sustained fuel cost pressure for importing economies.
President Trump called current Iran negotiations the "last chance" to end five months of conflict, pushing oil prices higher. Tehran denied formal talks are taking place, raising the risk of a diplomatic breakdown with direct consequences for global energy markets.