Collapse of US-Iran talks heightens fears of prolonged energy shock

JD Vance briefs media on Sunday after his meeting with Iranian and Pakistani officials. Photograph: Jacquelyn Martin/AP

The failure of the US and Iran to reach a peace deal after marathon negotiations has put markets on alert for further oil and gas price rises.

With large numbers of oil tankers remaining stuck in the Gulf, the US vice-president, JD Vance, blamed the collapse of the talks on Tehran’s refusal to abandon its nuclear weapons programme, while Iranian sources hit back at “excessive” demands from Washington.