Iran cut off all negotiations with the U.S. on Monday, with state media and key Iranian officials suggesting Israel’s continued attacks on Lebanon are to blame— derailing a potential peace deal that appeared closer than ever.
Smoke rises from the site of an Israeli strike in the southern Lebanese city of Tyre on May 31, 2026. (Photo by KAWANT HAJU / AFP via Getty Images)
Iran said it would halt talks with the U.S. over ongoing attacks by Israeli forces in Lebanon, Tasnim News Agency reported.
The report prompted an immediate surge in oil prices: West Texas Intermediate futures jumped 7.9% to $94.27 and Brent crude futures went up 6.9% as of 10:30 a.m. EDT.
Meanwhile, Iranian negotiators lamented ongoing fighting in Lebanon in posts on social media Monday, calling them violations of the ceasefire.
