Oil prices jump after US-Iran talks collapse, erasing recent declines

EnergyOil prices jump after US-Iran talks collapse, erasing recent declinesThe cost of both U.S. and international crude oil returned to levels not seen since mid-May. A fuel pump at a Wawa gas station in Aston, Pa., on May 21. Matthew Hatcher / Bloomberg via Getty Images fileShareAdd NBC News to GoogleJune 1, 2026, 11:35 AM EDTBy Steve KopackThe price of oil rose sharply on Monday, after Iranian government-aligned media reported that the country was cutting off talks with the United States to end the ongoing war.Subscribe to read this story ad-free Get unlimited access to ad-free articles and exclusive content.U.S. crude oil soared as much as 8.5% to nearly $95 per barrel, an increase of almost $8. International Brent crude climbed as much as 7.3% to more than $97 per barrel, a $6 spike.Heating oil, a proxy for jet fuel, also rose 7%, while wholesale gas prices rose 4%. As a result of of the most recent decline in oil prices, the cost of retail gasoline was down $0.24 Monday from this year’s peak. Still, gas prices remain higher by 44% on average, than they were before the war.Government bond yields, which heavily influence consumer borrowing rates, also jumped alongside energy prices. The 10-year U.S. government Treasury yield rose from 4.4% to 4.51%. The 30-year Treasury yield increased from 4.97% to 5.02%. Shorter term bonds, such as the two and five year Treasuries rose even more sharply.Monday’s market moves essentially put oil prices back to levels from mid-May, before it saw two weeks of declines as administration officials continued to suggest that some kind of deal with Iran to end the war was within reach.Now, as the war enters its fourth month, Tehran is reportedly suspending talks and “the exchange of texts through mediators” to protest Israel’s expanding offensive in Lebanon. Iran also said it was “determined to consider the complete closure of the Strait of Hormuz and the activation of other fronts including the Bab el Mandeb Strait,” a critical comme...