Collapse of US-Iran talks heightens fears of prolonged energy shock

Oil prices and borrowing costs are expected to rise this week as tankers remain stranded in the Gulf Middle East crisis live – latest updates The failure of the US and Iran to reach a peace deal after marathon negotiations has put markets on alert for further oil and gas price rises. With large numbers of oil tankers remaining stuck in the Gulf, the US vice-president, JD Vance, blamed the collapse of the talks on Tehran’s refusal to abandon its nuclear weapons programme, while Iranian sources hit back at “excessive” demands from Washington. Vance, who left Islamabad on Sunday morning after 21 hours of talks with Iranian officials in the Pakistani capital, said his team had been very clear on its red lines as hopes faded of a quick end to the war that began on 28 February with US and Israeli airstrikes on Tehran. A weekend market in US crude oil operated by the broker IG indicated that the oil price was going to rise when trading begins on Sunday night, UK time, to about $98 a barrel, from about $96.50 on Friday night before the peace talks in Pakistan. Tony Sycamore, market analyst at IG Australia, said: “Unless a sudden U-turn emerges, energy markets are set for a rocky open when