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

Oil prices rose on June 1 after reports that Iran had suspended talks with the US over a ceasefire, protesting Israel's attack on Lebanon.

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

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

The report also warned that Iran and the Axis of Resistance would fully block the Strait of Hormuz and open 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 control line, after Prime Minister Benjamin Netanyahu on May 25 ordered stronger operations against Hezbollah.

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

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

Trump wrote in a Truth Social post that he had brokered the halt in hostilities between Israel and Hezbollah.

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