Oil prices rose more than 2% after stalled U.S.–Iran peace talks reduced hopes for a ceasefire and increased uncertainty in global energy markets.

Brent crude climbed to around $106.99 as diplomatic efforts faltered following cancelled negotiations and ongoing tensions.

Meanwhile, Iranian officials continued talks with Russia as Tehran sought support amid the deadlock.

Despite the disruption in oil diplomacy, Asian stock markets opened higher, showing limited immediate financial spillover, Al-Jazeera has reported.

Concerns over threats to shipping in the Strait of Hormuz also added pressure, as reduced traffic in the key route raised fears for global oil and gas supplies.