Oil Prices Climb on Continued Impasse in U.S.-Iran Talks

Oil prices jumped and bond yields continued to rise on Monday amid signs that Iran and the United States remained far apart in negotiating a resumption of energy supplies from the Persian Gulf.The 10-year Treasury yield, which underpins corporate and consumer borrowing costs throughout the global economy, rose above 5.2 percent, its highest level in roughly two decades.The 30-year yield moved above 5.5 percent, also at a two-decade high and approaching its highest level since 2002.On Saturday, President Trump publicly rejected a cease-fire proposal that Iran offered last week to reopen the Strait of Hormuz, calling it “unacceptable.” Abbas Araghchi, Iran’s foreign minister, called Mr.

Trump’s rejection a “first reaction” and said he awaited “definitive news to be conveyed through intermediaries.” The fighting in the Middle East has driven up energy prices ahead of the midterm elections, frustrating voters who have been dealing with high cost of living.A growing number of Republicans are speaking out against the war, with some calling for its immediate end.Oil prices rise.The price of Brent crude, the global benchmark for oil, rose just under 1 percent to about $105 a barrel.West Texas Intermediate crude, the U.S.

benchmark, traded below $93 a barrel.Ship operators in the Persian Gulf remain wary of sending vessels through the Strait of Hormuz, the vital waterway between Iran and Oman.Advances by the Iranian-backed Houthi militia in Yemen have threatened oil shipments through the Red Sea, an alternative route to the Persian Gulf used by Saudi Arabia to get oil out to global markets.

Saudi authorities had to temporarily shut the critical East-West pipeline that shuttles oil from the Persian Gulf to the Red Sea, blaming a drone attack by an Iranian-backed Iraqi militia.The price of Brent crude briefly dropped below $100 a barrel last week on signs that Saudi Arabia had increased its exports through the Strait of Hormuz with help from the U.S.Navy.

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