Oil prices jump to $114.8 as US-Iran peace talks remain stalled

Benchmark Brent crude rose more than 3% to $114.8 a barrel by 6 pm on Wednesday, as uncertainties continue about whether the United States and Iran will resume talks to end the conflict in West Asia.

The price is at its highest level since June 2022, The Economic Times reported.

The price of Brent was $78 per barrel on February 27, a day before the conflict started.

The Wall Street Journal on Tuesday reported that US President Donald Trump had asked officials to prepare for an “extended blockade of Iran” in an effort to pressure Tehran’s economy.

The development also came after the United Arab Emirates announced that it will withdraw from the OPEC and OPEC+ groupings on Friday to focus on “national interests”.

The Organisation of the Petroleum Exporting Countries was founded in 1960 and comprises 12 countries, mainly from West Asia, that aim to coordinate petroleum policies and influence global oil prices. The UAE had joined the grouping in 1967.

OPEC+ is a broader alliance formed in 2016 that includes 10 other major non-OPEC producers to strengthen the group’s hold over global energy supply. This alliance, which also includes Russia, accounted for nearly 50% of global oil and oil liquids production in 2025.

However, this share fell to about 44% in March because of the war in West Asia.

The US and Israel launched an attack on Iran on February 28, claiming that Tehran’s action posed an existential threat to Israel. Washington acts as a guarantor of Israel’s security. Iran retaliated by striking Israel and US military bases in the region and targeting major cities in Gulf countries.

Iran has effectively blocked the Strait of Hormuz since the war broke out on February 28. About 20% of the global petroleum supply passes through the maritime chokepoint.

India imports 88% of its crude oil needs and about half of its natural gas requirement. This mostly comes through the Strait of Hormuz.