Crude oil prices climbed to their highest point in nearly three weeks on Monday morning, with benchmark Brent rising two per cent to just below $108 a barrel.The surge followed President Donald Trump’s decision to scrap plans for sending American negotiators to Pakistan for talks with Iran.Mr Trump announced over the weekend that US envoys would not be travelling to Islamabad, blaming insufficient progress in discussions.Speaking to Fox News, the President said: “If they want, we can talk but we’re not sending people.”The price increase returns Brent crude to levels last witnessed before initial peace negotiations commenced in early April.Since the onset of the war, the Strait of Hormuz, a vital shipping route carrying approximately a fifth of global oil supplies, continues to be effectively closed to commercial traffic.Hopes briefly rose in mid-April when crude dropped below $87 a barrel after both nations indicated the waterway had reopened for tankers, but passage quickly became impossible again as diplomatic efforts stalled.Susannah Streeter, chief investment strategist at Wealth Club, noted: “The President said negotiators would be wasting their time heading to Pakistan and the lack of progress has hit sentiment at the start of the week.” LATEST DEVELOPMENTSLidl targets more than 1,000 new store openings across UK – full list of areas hereLabour warns Iran conflict will push UK prices higher for ‘eight-plus months’ after resolutionRachel Reeves blasted as ‘economically illiterate’ amid National Insurance hikesShe added that Iran has reportedly submitted a fresh proposal aimed at reducing tensions and potentially reopening the strait, though specifics remain unclear and “patience on both sides is clearly frayed”. BP stands to benefit significantly from the crude price rally when it publishes quarterly results on Tuesday.The Ftse 100 energy company indicated earlier this month that it expects an “exceptional” performance from its oil trading division during the first three months of 2026.This upgraded guidance follows what the firm described as a “weak” trading outcome in the closing quarter of last year.Since the US-Israel military action against Iran began on February 28, oil prices have jumped more than 60 per cent year-to-date. Brent crude peaked near $120 a barrel at one point and remains above the $100 threshold amid ongoing supply concerns.The oil giant also flagged some headwinds in its upcoming results, with upstream production expected to remain broadly unchanged from the previous quarter and oil output set to dip slightly.Net debt is projected to climb to between $25-$27billion, rising from $22.2billion recorded in the fourth quarter. The company disclosed that each one-dollar shift in barrel prices affects pre-tax operating profits by $340million.BP’s share price has surged nearly a third over the past six months on the back of the crude rally. Tuesday’s figures will be the first since Meg O’Neill assumed the chief executive role on 1 April.
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