Oil Rises After Iran Halts Talks With US; WTI Jumps 5.5%

Oil prices rose on June 1 after reports that Iran had suspended talks with the US on ending the war in protest of Israel's attack on Lebanon.

Brent crude for August settlement closed at $94.98 a barrel on ICE Futures Europe, up 4.2% from the previous session. West Texas Intermediate crude for July delivery settled at $92.16 a barrel on the New York Mercantile Exchange, up 5.5%.

Iran's Tasnim News reported that "crimes by the Zionist regime (Israel) are continuing in Lebanon." It added that, because Lebanon had been one of the preconditions for an April 8 ceasefire, Iran's negotiating team had decided to halt talks and document exchanges through mediators as the ceasefire had now been violated on all fronts, including Lebanon.

Tasnim also warned that Iran and the Axis of Resistance would fully block the Strait of Hormuz and activate new fronts, including the Bab el-Mandeb Strait at the entrance to the Red Sea, to punish Israel and its backers.

The Israeli military resumed attacks on Lebanon beyond the so-called Yellow Line, the existing line of control, following Prime Minister Benjamin Netanyahu's directive on May 25 to intensify operations against Hezbollah.

After Iran announced the suspension of talks, Brent briefly climbed to as high as $97.79 a barrel during the session.

Oil later pared some gains after US President Donald Trump said Israel and Hezbollah had halted their fighting.

Trump wrote on social media platform Truth Social that he had mediated the halt in fighting between Israel and Hezbollah.

Ko Jung-sam, Hankyung.com reporter jsk@hankyung.com