Oil prices surged on Monday after Iran announced it was suspending all exchange of negotiation messages with the United States through intermediaries, following what it described as ongoing Israeli ceasefire violations in Lebanon that it said constituted a breach of the broader ceasefire framework on all fronts including in Lebanon.
West Texas Intermediate crude for July delivery rose 5.8 percent to 92.49 dollars a barrel, its largest single-day gain since late April, while Brent crude’s August contract advanced 4.9 percent to 95.60 dollars, its strongest day since early May.
Iran’s IRGC-affiliated news agency Tasnim reported that Tehran was not only halting mediated dialogue but was also moving to pursue complete closure of the Strait of Hormuz and to activate other fronts including the Bab al-Mandab Strait, in retaliation for what it described as Israel’s continuing actions in Lebanon. Tehran also demanded a full Israeli withdrawal from Lebanon.
The escalation followed overnight Israeli strikes on the southern suburbs of Beirut ordered by Prime Minister Benjamin Netanyahu, and a separate United States Central Command announcement that it had launched strikes on drone sites in Iran’s southern region near the Strait of Hormuz in retaliation for an Iranian shoot-down of a US drone over international waters.
Iranian Foreign Minister Abbas Araghchi said a violation of the ceasefire on one front constituted a violation on all fronts, and that the US and Israel bore responsibility for any consequences. Parliament Speaker and lead negotiator Mohammad Bagher Ghalibaf also accused the US of breaching the ceasefire by continuing its military blockade of Iranian ports.
President Donald Trump disputed the Iranian characterization, posting on Truth Social that talks were continuing with Iran at a rapid pace. He had separately reported a productive conversation with Netanyahu in which the Israeli prime minister said he would not be sending troops to Beirut. It remained unclear whether all channels of communication between the two sides had been suspended or only the mediated exchange of written texts.
