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Iran Reports Suspension of U.S. Talks as Oil Jumps on Chokepoint Threats

Reported threats to close the Strait of Hormuz signal higher near-term oil supply risk, pushing bond yields higher.

Overview

  • Iranian state media reported that Tehran has suspended negotiations with the United States, a claim that Monday triggered immediate market moves as traders reassessed the chance of wider conflict.
  • U.S. crude and Brent both rose roughly 7–8%, with WTI trading near $94–95 a barrel and Brent around $97, reversing recent two-week declines.
  • U.S. Treasury yields climbed with the shock to oil prices, the 10-year near 4.5% and the 30-year about 5.02%, while major U.S. stock indexes fell modestly and large AI-focused shares helped limit losses.
  • Shipping data and analysts warn the Strait of Hormuz has seen only single-digit daily transits for much of May, a pattern that would let any prolonged closure drain inventories quickly and amplify price spikes.
  • Coverage stresses that Tehran's statements come from Iranian state media and are not independently confirmed by U.S. officials, leaving the situation fluid and the market reaction focused on near-term supply and inflation risks.