Oil prices extend gains as Iran said to suspend peace talks with US

(Sharecast News) - Oil prices rose further in afternoon trade on Monday following a report that Iran has suspended peace talks with the US until Israel ends its operations in Lebanon. According to Iranian news agency Tasmin, Iran has suspended the talks in protest at Israel's offensives in Lebanon and Gaza.

Tasnim said the suspension would remain in place until "the positions of Iran and its allied proxy forces are taken into account".

It also said that Iran will move to fully close the Strait of Hormuz.

At 1457 BST, Brent crude was up 5.5% at $96.12 a barrel and West Texas Intermediate was 6.6% higher at $93.13.

Oil prices were already trading higher after Iran and the US continued to trade blows over the weekend, dampening hopes for an imminent peace deal.

European stocks also took a turn for the worse, with London's FTSE 100 down 0.8% and the benchmark Stoxx 600 index 1% lower by 1509 BST.