US-Iran talks remain 'stalled', oil prices surge. Experts warn that the closure of the Strait of Hormuz could lead to long-term economic disruptions, reports Todayinfo.
The US-Israeli war on Iran has entered its 60th day. Negotiations remain stalled amid soaring oil prices and inflation. The US and Israel launched their attack on Iran on February 28. Tehran retaliated by closing the Strait of Hormuz, through which about 20 percent of the world's oil and gas exports pass.
The US has imposed a blockade on ships carrying Iranian oil to force Iran to shut down production. Oil prices have surged: WTI crude reached $100.09, Brent crude $111.85. In the US, petrol prices hit their highest level in nearly four years.
'Negotiations seem stalled and any near-term resolution seems difficult,' said Rachel Ziemba, adjunct senior fellow at the Center for a New American Security.
The UAE announced it would leave OPEC effective May 1, aiming to increase oil production, but this is not feasible while the strait remains closed. Prices will continue to rise.
The US consumer price index rose to 3.3 percent annually, the highest since May 2024, driven by energy price increases. Oxford Economics lowered its global GDP growth forecast by 0.4 percentage points due to prolonged disruption to shipping through the Strait of Hormuz.
