Oil Prices Climb as US-Iran Talks Stall, Markets Turn Cautious Ahead of Key Economic Week

ERBIL (Kurdistan24) – Global markets showed mixed signals on Monday as oil prices surged while stock indices wavered, following a halt in diplomatic momentum between the United States and Iran.

Crude prices rose by more than one percent, with Brent crude remaining above $100 per barrel, supported by ongoing tensions around the Strait of Hormuz, a critical global oil transit route that remains largely closed. However, expectations that negotiations could eventually resume helped limit sharper gains.

Hopes for renewed diplomacy had briefly increased during a visit by Iranian Foreign Minister Abbas Araghchi to Islamabad. Those prospects faded after U.S. President Donald Trump canceled a planned weekend trip by American envoys.

Speaking to Fox News, Trump suggested Iran should take the initiative if it seeks negotiations, saying, “they can come to us, or they can call us.”

Equity markets reacted cautiously. On Wall Street, major indices opened lower, though the Dow Jones Industrial Average later edged higher while the S&P 500 stabilized. The Nasdaq slipped slightly from its recent record close.

In Europe, trading was mixed, with London stocks declining while Frankfurt and Paris posted modest gains. Asian markets also showed divergence, as Tokyo and Seoul benefited from a technology-sector rally, while Hong Kong equities moved lower.

Analysts said markets have entered a “wait-and-see” phase. Derren Nathan of Hargreaves Lansdown noted that expectations for a diplomatic breakthrough had been limited from the outset, leaving investors focused on upcoming economic developments.

Attention is now turning to a busy week of central bank decisions. The Federal Reserve is widely expected to hold interest rates steady, with similar outcomes anticipated from the European Central Bank and the Bank of England.

Market participants are closely watching policymakers’ comments for signals on inflation. David Morrison of Trade Nation said that while rate cuts are not expected, guidance on price pressures will be key.

Investors are also bracing for earnings reports from major U.S. technology companies, including Alphabet, Meta, Microsoft, Amazon, and Apple.

Russ Mould of AJ Bell said strong corporate updates have supported equities in recent weeks. However, he warned that persistently high oil prices could fuel inflation, posing a potential risk to broader economic growth.