Oil Prices Rise to Two-Week High as U.S.-Iran Talks Stall

Oil prices surged about 3% on Monday, reaching their highest point in two weeks as diplomatic efforts between the U.S. and Iran hit a dead end.

The stalled talks have markets worried about oil supplies. The Strait of Hormuz, a narrow waterway between Iran and other Gulf states, remains a major concern. This shipping lane handles roughly one-fifth of all global oil shipments.

With talks canceled and tensions high, oil companies are keeping supplies tight. That means higher costs get passed down to consumers at gas stations across the country.

Gasoline prices are expected to climb further this week, with diesel fuel prices likely to follow the same pattern. The energy market is reacting to the uncertainty, with traders betting that oil supplies could get even tighter if the diplomatic standoff continues.