Global oil prices jump 7% to top $97 a barrel after Iran reportedly suspends talks with U.S. and fully closes Strait of Hormuz

By Isabel Wang and Myra P. Saefong

The oil market will need to price in a longer conflict and a higher risk of disruption to supply without a peace deal: deVere Group

Iran will move to fully block the Strait of Hormuz.

Oil prices were surging on the first trading day of June after Iran reportedly suspended all exchange of negotiation messages with the U.S. due to continued Israeli cease-fire violations in Lebanon, dashing hopes for an imminent deal between Washington and Tehran to end the war in the Middle East.

The West Texas Intermediate crude contract for July delivery (CL.1) (CLN26) was popping 7% to $97.51 a barrel, on pace for its largest one-day gain since April 29. Brent crude's August contract (BRN00) (BRNQ26) was up 8.3% to $94.59 a barrel, on track for its best day since May 4, according to FactSet data.