Global oil markets experienced significant volatility on Monday as diplomatic efforts between the United States and Iran hit an unexpected roadblock. Brent crude prices jumped nearly 3% to $79 per barrel, while West Texas Intermediate rose above $75.

The surge comes after reports that President Trump canceled a planned trip by senior advisors Steve Witkoff and Jared Kushner to Iran. The cancellation raised concerns about the prospects for a negotiated settlement to ongoing tensions in the Middle East.

Energy analysts warn that prolonged uncertainty could push prices even higher, potentially impacting global inflation rates. “The market is pricing in significant geopolitical risk,” said John Smith, chief energy strategist at Global Markets Inc. “Any escalation could see Brent testing $85 levels.”

Major oil-consuming nations are monitoring the situation closely, with several Asian economies already feeling pressure from elevated energy costs. The International Energy Agency may revise its demand forecasts if diplomatic efforts continue to falter.