Renewed Middle East tensions are driving oil prices higher, fueling inflation and economic growth concerns. Despite market optimism, significant challenges remain in resolving issues with Iran, and markets may not have fully priced in potential disruptions, particularly around the Strait of Hormuz.

Oil prices sharply rose on Monday afternoon as Iran suspended all indirect talks with the US and vowed to fully close the Strait of Hormuz.

Oil prices edged up while Asian equities have gained momentum, driven by a boom in artificial intelligence stocks, despite ongoing uncertainty surrounding US-Iran negotiations.

Brent crude futures rose nearly 3% to $94 a barrel, which in turn prompted a selloff in government bonds

Oil prices surged after US strikes on Iran and stalled diplomacy, fueling fears of escalating Middle East tensions and potential Strait of Hormuz blockade.

Renewed Middle East tensions are driving oil prices higher, fueling inflation and economic growth concerns. Despite market optimism, significant challenges remain in resolving…