Futures prices on oil Brent is growing by over 4%. to about $95. per barrel. The oil market saw high volatility on Monday following news from the Middle East. First, Iran announced the suspension of communications with the US in response to Israel's intensified military activities in Lebanon. After Tehran's announcement, oil prices rose by over 6%. Then Donald Trump announced ceasefire between Israel and Hezbollah in Lebanonand the price of the raw material gave back some of the increases.
Oil prices were already rising on Monday morning after the weekend's exchange of attacks between the United States and Iran. Even though prices turned south after the announcement of the ceasefire in Lebanon, the raw material is still more expensive than during the previous session on Friday. Brent crude oil futures are up by over 4%. up to $95 per barrel.
See also: Oil prices rise after the US and Iran attacks. Analysts do not believe in peace
Iran announced the suspension of communication with the US
According to the semi-official Tasnim news agency the Iranian negotiating team will suspend talks and exchange of documents with the US through mediatorsaccusing Washington of sending contradictory signals and prolonging negotiations.
Iran reacted to Israel's intensifying military activities in Lebanon. On Monday, Israeli Prime Minister Benjamin Netanyahu ordered an attack on a southern suburb of Beirut, considered a Hezbollah stronghold.
Iran also threatened, among others, that with the help of allied militias it will also block the Bab al-Mandab Strait.
Earlier in the day, Foreign Ministry spokesman Esmail Baghaei said Iran maintains contacts with the US but continues to do so with “distrust.”
These events raised concerns about the prospects for an interim peace agreement, especially as U.S. and Iranian forces engaged in new clashes near the Strait of Hormuz.
See also: Disturbing words from Iran about negotiations with the US. Harsh words about Trump. “He cheats”
Donald Trump commented on Iran's decision. “We talked too much”
US President Donald Trump said on Monday that he had no objection to suspending negotiations with Iranclaiming that “silence” in the talks would be “very good” and may last a long time.
“I think we talked too much,” Trump said, as quoted by NBC. He also emphasized that a break in talks would not mean a resumption of fighting.
Donald Trump announces a breakthrough in Lebanon
Donald Trump announced on Monday that the leaders of Israel and Hezbollah had agreed to halt fighting in Lebanon.
“I had a very fruitful conversation with Israeli Prime Minister Bibi Netanyahu and there will be no troops heading to Beirut, and those on the way have already been turned back,” Trump said in a post on the social media platform Truth Social.
“Similarly, through high-ranking representatives, I had a very fruitful conversation with Hezbollah, who agreed that all fighting would cease — that Israel would not attack them and they would not attack Israel,” he added.
