Oil prices rose and global stock markets slipped Monday after President Donald Trump warned Iran that "the Clock is Ticking" to reach a peace agreement, adding new pressure to diplomatic efforts tied to the 80-day conflict involving Iran, Israel and the United States.
Brent crude climbed above $110 a barrel in early trading, while benchmark U.S. crude traded above $106, extending sharp gains seen since the war began earlier this year. Major Asian and European indexes also declined as investors reacted to fears that tensions in the Middle East could intensify further, according to market reporting published by CBS News.
Trump issued the warning Sunday after speaking with Israeli Prime Minister Benjamin Netanyahu, saying Iran "better get moving, FAST, or there won't be anything left of them." The remarks came as indirect negotiations between Washington and Tehran continued through Pakistani intermediaries.
Iranian Foreign Ministry spokesman Esmaeil Baqaei said Monday that Tehran had conveyed revised terms for a possible peace agreement to the United States and remained focused on ending the war. Baqaei said Iran had not yet discussed "details regarding nuclear matters" during the latest exchanges.
"Talks and negotiations are a continuous process, not an intermittent one," Baqaei said, according to CBS News. He also said Iran would not abandon what it considers its rights under the Nuclear Non-Proliferation Treaty.
The renewed tensions added to concerns over security in the Strait of Hormuz. The conflict has already disrupted energy markets since fighting intensified earlier this year following Israeli and U.S. strikes targeting Iranian military and nuclear infrastructure.
Analysts at ING warned Monday that "re-escalation risks are increasing" after hopes for diplomatic progress appeared to fade following Trump's recent visit to Beijing, where expectations had emerged that China might encourage Tehran toward a settlement, according to reporting by Reuters.
The market reaction also followed a drone strike Sunday near the Barakah nuclear power plant in the United Arab Emirates. Emirati authorities said an electrical generator on the perimeter of the facility caught fire, though there were no injuries or radiation leaks. No group claimed responsibility, but suspicion quickly fell on Iran because of recent threats directed at the UAE during the conflict, according to IBT.
The Barakah facility, which opened in 2020, is the first commercial nuclear power plant in the Arab world and supplies roughly a quarter of the UAE's electricity needs.
The latest developments come after months of regional instability that have drawn in several countries and disrupted commercial shipping, oil exports and military activity across the Gulf region. The conflict has also deepened fears over attacks on energy infrastructure after repeated strikes involving ports, refineries and military installations tied to Iran and its regional rivals.
Former U.S. Defense Secretary Robert Gates said Sunday that negotiations remained central to resolving the conflict despite military operations that he said had significantly damaged Iran's nuclear capabilities.
"The only way to completely bring an end to Iran's nuclear aspirations is through a negotiation," Gates said during an interview on CBS' "Face the Nation."
Gates also said internal unrest inside Iran had not developed into a large-scale uprising despite earlier anti-government protests tied to economic conditions. He said the Iranian government's internal controls still appeared "very much intact."
Iran meanwhile warned Monday that it remained prepared for any further military action. Baqaei said Tehran was pursuing diplomacy "with seriousness," but added that Iran would "respond with full strength" if attacked again.
The war has continued to pressure global markets since late February, when oil traded near $70 a barrel before the conflict escalated sharply. Concerns over shipping disruptions through the Gulf and the possibility of broader regional attacks have since driven repeated swings in energy prices and investor sentiment.
