Global oil markets are on edge after tensions between United States and Iran escalated, derailing hopes for renewed peace negotiations.

Prices jumped sharply as uncertainty over supply routes rattled investors, The Caspian Post reports via Kazakh media.

Brent crude climbed more than 2 percent, briefly touching $106.99, as the collapse of ceasefire talks between Washington and Tehran sent shockwaves through energy markets. The stalled diplomacy has heightened concerns over potential disruptions in one of the world’s most critical oil corridors.

Despite the geopolitical strain, Asian stock markets opened higher. Japan’s Nikkei 225 and South Korea’s KOSPI posted gains in early trading, suggesting investors are cautiously balancing optimism with risk.

The setback came after Donald Trump cancelled a planned diplomatic visit involving envoys Steve Witkoff and Jared Kushner. Meanwhile, Iran’s top diplomat Abbas Araghchi shifted focus to talks in Saint Petersburg, seeking alternative diplomatic pathways with Russian leadership.

Tensions remain high around the Strait of Hormuz, a vital artery for global energy flows. Shipping traffic has dropped dramatically amid Iranian threats, with just 19 vessels passing through the strait on Saturday-far below normal levels.

With the fragile truce extended but no clear deadline for a deal, markets are bracing for further volatility. Any disruption in the region could send prices even higher, putting additional pressure on the global economy.