Oil Prices Spike as JD Vance Leads Mediated Iran Talks

U.S. President Donald Trump has criticized Iran for its management of the Strait of Hormuz, warning Tehran against charging tanker fees as a blockade in the waterway continues to trigger a global energy crisis.

Tensions Rise Over Strait of Hormuz Blockade

President Trump used his Truth Social platform to state that Iran is doing a “very poor job” and acting “dishonourable” regarding the flow of oil through the Strait of Hormuz. He explicitly warned Iran that charging fees for passage is not part of the existing agreement and demanded the practice stop immediately.

The waterway is a critical shipping channel for approximately one-fifth of the world’s oil and gas supply. Iran has stated that it halted shipping traffic in the region in retaliation for Israeli strikes in Lebanon.

The instability has caused significant volatility in energy markets. While Brent crude fell below $94.50 following a Tuesday ceasefire announcement, prices climbed again on Friday as tanker traffic remained largely frozen.

Diplomatic Missions in Islamabad

Vice President JD Vance has departed for Islamabad, Pakistan, to lead mediated talks with Iran. Vance is accompanied by special envoy Steve Witkoff and Jared Kushner.

The delegation aims to resolve conflicts surrounding Tehran’s nuclear and ballistic weapons programs, as well as its support for armed proxy groups. These discussions follow a February 28th war launched by the U.S. and Israel against Iran.

While President Trump expressed optimism to reporters that a peace deal is within reach, the White House has provided few details on whether these talks will be direct or indirect.

Israel-Lebanon Conflict Escalates

Israeli Prime Minister Binyamin Netanyahu has ordered the start of direct negotiations with Lebanon, focusing on the disarmament of Hizbullah and the establishment of peace relations.

The announcement follows Israeli attacks that killed hundreds of people in Lebanon. In response, Hizbullah fired rockets at Misgav Am in the Upper Galilee and the town of Kiryat Shmona, citing Israeli violations of a US-Iran ceasefire agreement.

Israel maintains that the US-Iran ceasefire does not extend to the Hizbullah militia and has stated it will continue to strike the group with full force. A U.S. State Department official indicated that Israel and Lebanon will hold further talks in Washington next week, though neither country has publicly confirmed the meeting.

International friction has also emerged regarding the crisis, with UK Prime Minister Keir Starmer criticizing President Trump’s approach, stating that the world’s economy and businesses are suffering as a result.