Oil Surges Over 5% as Iran Threatens Hormuz Closure, Halts US Talks

Oil prices jumped more than 5% on Monday, June 1, 2026, after Iran’s Tasnim news agency reported that Tehran would stop communicating with Washington via intermediaries and threatened to fully close the Strait of Hormuz. The move was a response to what Iran called continued violations of a ceasefire agreement, specifically citing Israeli military operations against Hezbollah in Lebanon. The escalating rhetoric dimmed hopes for a diplomatic resolution to the four-month U.S.-Iran conflict. President Trump had said three days earlier he would decide on a potential temporary deal, but no announcement followed a White House Situation Room meeting. The prospect of a blockade at the critical chokepoint, through which a fifth of global oil supply passes, stoked supply disruption fears and inflation concerns. The White House and CENTCOM have not commented on the report.