Oil prices rise as U.S. and Iran appear locked in a costly stalemate
Oil prices rise as U.S. and Iran appear locked in a costly stalemate
Tucker RealsMon, April 27, 2026 at 12:53 PM UTC
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Oil prices rise as U.S. and Iran appear locked in a costly stalemate
What to know about the Iran war today:Iran has offered a deal to reopen the Strait of Hormuz to commercial shipping if the U.S. drops its military blockade of Iranian ports and vessels, sources tell CBS News. But the offer apparently includes no concessions on Iran's nuclear program, which President Trump has insisted must be dismantled as part of any agreement to end the two-month war. Hezbollah's leader has flatly rejected the U.S.-brokered negotiations between Israel and Lebanon, "and their outcomes," raising new doubt over the tenuous ceasefire in the parallel war and further complicating prospects for a U.S.-Iran deal.Mr. Trump abruptly called off plans over the weekend to send senior envoys to Pakistan for a second round of direct talks with Iranian officials, insisting his administration has "all the cards" and if Tehran wants "to talk, they can come to us, or they can call us." The move has left prospects for the Pakistan-led diplomacy deeply in doubt, as Iran's foreign minister meets with President Vladimir Putin in Russia on Monday. White House says Trump admin "will not negotiate through the press" as Iran offers Strait of Hormuz deal
A White House spokesperson told CBS News on Monday, in response to officials saying Iran had offered a deal to reopen the Strait of Hormuz in exchange for a dropping of the U.S. naval blockade, that the Trump administration would "not negotiate through the press."
"These are sensitive diplomatic discussions and the U.S. will not negotiate through the press. As the President has said, the United States holds the cards and will only make a deal that puts the American people first, never allowing Iran to have a nuclear weapon," Assistant White House Press Secretary Olivia Wales said in a statement.
Sources told CBS News that Iran's proposal did not include any terms related to the country's nuclear program, and would leave that matter to be negotiated later.
President Trump and his cabinet have said repeatedly that the U.S. naval blockade of Iranian ports and vessels will remain in place until the regime accepts its terms for a peace agreement, including handing over its enriched uranium and abandoning its nuclear program.
Stocks mixed but oil prices stay high amid uncertainty over any new U.S.-Iran talks
World shares were mixed Monday as the price of Brent Crude oil jumped $2.50 a barrel early in the day as talks on ending the war between the U.S. and Iran remained snagged.
Disruptions to shipping through the Strait of Hormuz have pushed oil prices sharply higher since the war began.
On Monday, Brent futures were up just more than 1% at $106.47 a barrel after initially trading around a multi-week high of $108.50 earlier in the session.
"It may be that hopes of a diplomatic breakthrough were pretty faint to start with, and markets are now in wait-and-see territory ahead of a heavy week of earnings and economic touchpoints," said Derren Nathan, head of equity research at Hargreaves Lansdown.
With energy prices high, the U.S. Federal Reserve is expected to keep interest rates unchanged on Wednesday, followed by similar decisions from the European Central Bank and Bank of England, which analysts believe is helping stock prices remain buoyant.
Markets in London, Paris and Frankfurt all advanced despite the elevated oil prices and a lack of progress in negotiations. U.S. futures were broadly steady ahead of trading.
Asian markets were mixed on Monday, as Tokyo and Seoul were buoyed by a tech rally, while Hong Kong slipped.
Investors were also looking ahead to earnings this week from U.S. tech titans Alphabet, Meta, Microsoft, Amazon and Apple.
"Investors have been encouraged by corporate news flow over the past few weeks, leading to higher equity prices," said Russ Mould, investment director at AJ Bell.
He added, however, that "higher oil for longer spells trouble for inflation, which in turn could act as a headwind for the economy."
CBS/AFP
Israel announces new strikes in Lebanon
Israel's military said Monday that it "has begun to strike Hezbollah infrastructure sites in the Beqaa Valley and in additional areas across southern Lebanon," as Israel's ceasefire with the Lebanese government continues to be challenged by an expanding exchange of fire with the Iranian-backed group.
The announcement by the Israel Defense Forces came shortly after sirens sounded in a few northern Israeli communities on the border with Lebanon, as authorities said drones had entered the country. There were no immediate reports of impacts.
Lebanese leader dismisses Hezbollah's criticism over deal with Israel
Lebanon's President Joseph Aoun commended the Trump administration on Monday for its efforts to end Israel's war with the Iranian-backed group Hezbollah in his country, and dismissed criticism from the group for agreeing to a ceasefire with Israel that has largely failed to stop the bloodshed.
Hezbollah's leader issued a scathing statement Monday flatly rejecting the Lebanese-Israeli negotiations brokered by the U.S., which have brought an ongoing ceasefire marked by multiple accusations of breaches by both sides and a still-rising death toll.
Hezbollah has not been involved in the talks, and it continues exchanging deadly fire with Israeli forces, who have occupied a swath of southern Lebanon and forced tens of thousands of residents to flee their homes.
"Some criticize us for deciding to go into negotiations under the pretext that there is no national consensus," Aoun said in a statement shared by his office on Monday. "I ask: When you went to war, did you first obtain national consensus?"
Hezbollah started launching attacks on Israel in retaliation for the U.S.-Israeli strikes on Iran, which killed the Islamic Republic's supreme leader, soon after the war began on Feb. 28. Israel responded with overwhelming force, unleashing a barrage of airstrikes on southern Lebanon and areas around its capital Beirut and later launching the ongoing ground invasion.
"How long will the people of the south continue to pay the price for others' wars on our land, the latest being the war in support of Gaza and the war in support of Iran?" Aoun asked Monday. "If the war were for Lebanon, we would have supported it, but when its purpose serves others, I completely reject it. What we are doing is not betrayal; betrayal is when someone drags their country into war for external interests."
Lebanon says 14 people killed by Israeli strikes on Sunday alone
Violence has continued between Israel and Hezbollah in Lebanon in spite of a recently extended ceasefire between Israel and Lebanon's government.
The two sides traded blame over violations on Sunday, with Prime Minister Benjamin Netanyahu saying the military was "vigorously" targeting the group as both sides claimed new attacks.
Hezbollah drew Lebanon into the Middle East war on March 2 by firing rockets at Israel to avenge the death of Iran's supreme leader Ali Khamenei, with Israel responding with strikes and a ground invasion.
Netanyahu told a weekly cabinet meeting that Hezbollah's actions were "dismantling the ceasefire," while Hezbollah vowed to respond to Israeli violations and its "continued occupation" of part of southern Lebanon.
Lebanon's health ministry said Israeli strikes on the country's south killed 14 people on Sunday alone, the deadliest day since the tenuous truce came into force.
This photograph taken from the northern Israel shows an Israeli military vehicle driving along a road between destroyed houses in southern Lebanon, near the border with Israel, April 27, 2026. / Credit: Jalaa MAREY/AFP/Getty
Israel also reported a soldier killed in combat in south Lebanon. The country maintains that under the terms of the truce, it can act against "planned, imminent or ongoing attacks."
"This means freedom of action not only to respond to attacks ... but also to pre-empt immediate threats and even emerging threats," Netanyahu said.
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CBS/AFP
Oil prices rise again as Pakistan talks fail to materialize
Oil prices climbed almost 3% Monday as hopes for a peace deal between the U.S. and Iran dimmed and energy shipments through the Strait of Hormuz remained extremely constrained.
The price of international benchmark Brent Crude was up about $3, or almost 3%, to $108.36 per barrel early Monday morning, its highest price point in three weeks. U.S. West Texas Intermediate was up 2.6% before U.S. markets opened, at $96.85.
The Reuters news agency said Brent and WTI gained almost 17% and 13% respectively over the course of last week - their biggest weekly rise since the Iran war began.
There was brief hope at the end of last week that direct peace talks between the U.S. and Iran might resume, but President Trump said Saturday that he was not sending his envoys Steve Witkoff and Jared Kushner to Pakistan for a new round of negotiations, citing wasted time and confusion over Iran's leadership.
"We have all the cards," Mr. Trump insisted, adding that Iranian leaders could call him if they wanted to negotiate an end to the two-month war.
Iran offers deal to reopen Strait of Hormuz if U.S. drops blockade, but without nuclear concessions
Iran is offering to end its chokehold on the Strait of Hormuz without addressing its nuclear program, sources told CBS News on Monday, as the country's foreign minister made a visit to Russia he said was an opportunity to consult with Moscow regarding the war against Israel and the United States.
Axios was first to report the new offer from Iran, which President Trump is unlikely to accept as it does not address the nuclear issue.
Iran wants the U.S. to end its blockade of the country as part of its proposal, said the two officials, who spoke on condition of anonymity to discuss the closed-door negotiations — another stipulation the White House has previously rejected.
The new proposal, passed to the United States by Pakistani intermediaries, likely won't gain support from Mr. Trump, who has said he wants any peace deal to include a complete end of Iran's nuclear enrichment program.
"We have all the cards. If they want to talk, they can come to us, or they can call us," Mr. Trump said Sunday to the Fox News Channel.
CBS/AP
Hezbollah leadership "categorically reject" U.S.-brokered Israel-Lebanon "negotiations and their outcomes"
The Secretary-General of the Iranian-backed group Hezbollah in Lebanon, Sheikh Naim Qassem, said in a statement Monday that the group's leadership "categorically reject direct negotiations" that the U.S. has been brokering between Israel and Lebanon's government.
"Those in the position of authority must know that their actions will not benefit Lebanon nor themselves. What the Israeli-American enemy wants from them is not in their hands, and what you want from it will not be granted to you," Qassem said.
His statement is the latest rejection of the diplomacy that led to the ongoing, but incredibly fraught ceasefire that President Trump pushed Israel and Lebanon to sign weeks ago, which he then announced a three-week extension of last week, in a bid to smooth the path for a wider peace deal with Iran.
Hezbollah has long been one of Iran's most powerful so-called proxy paramilitary forces in the Middle East, while also functioning as a political party in Lebanon. It's Hezbollah's forces engaging in crossfire with Israel, not Lebanese state forces, and the group's exclusion from the Trump administration-led negotiations between Israel and Lebanon has complicated the ceasefire since it was first signed.
On Monday, Qassem said bluntly that, for Hezbollah, "these direct negotiations and their outcomes are as if they do not exist for us, and they do not concern us in any way whatsoever."
Hezbollah's rejection of the negotiations leaves the viability of the ceasefire in greater doubt than ever. And as the Iranian regime has said it will not agree to any peace deal that doesn't also halt Israel's war in Lebanon, it also casts further doubt on the prospects for a wider U.S.-Iran agreement to end the war that has gridlocked the Strait of Hormuz and already fueled rising inflation across the globe.
Death tolls climb as diplomacy stutters
Since the U.S. and Israel launched their war with Iran on Feb. 28, at least 3,375 people have been killed in Iran and at least 2,509 people in Lebanon, according to health authorities in both countries.
Israel dramatically ramped up its parallel war with Hezbollah in Lebanon two days after the Iran war began, in response to the Iranian-backed group firing volleys of rockets at Israel in retaliation for the strikes on Iran.
Israeli authorities say 23 people have been killed in the country during the war, and more than a dozen have been killed in Gulf Arab states allied with the U.S. by Iran's retaliatory missile and drone fire.
Fifteen Israeli soldiers in Lebanon, 13 U.S. service members in the region and six U.N. peacekeepers in southern Lebanon have also been killed.
CBS/AP
Iran's top diplomat to meet with Putin in St. Petersburg, Russia
Iran's Foreign Minister Abbas Araghchi was in Russia Monday for a meeting with President Vladimir Putin as part of a regional tour that included two stops in Pakistan and a visit to Oman, which shares the Strait of Hormuz with the Islamic Republic, Iran's state-run IRNA news agency reported.
Pakistan-led mediators are working to bridge significant gaps between the U.S. and Iran, according to a regional official involved in the mediation efforts who spoke to The on the condition of anonymity because they were not authorized to discuss the matter.
CBS/AP
Iran's foreign minister, in Russia, blames U.S. for Pakistan talks failure, Iranian state media report
Iranian Foreign Minister Abbas Araghchi on Monday blamed the United States for the failure of peace talks in Pakistan, after arriving in Russia for a meeting with President Vladimir Putin.
"The U.S. approaches caused the previous round of negotiations, despite progress, to fail to reach its goals because of the excessive demands," Araghchi was quoted as saying by Iranian state media.
He also said "safe passage through the Strait of Hormuz is an important global issue," as the US and Iran continue their rival blockades of the vital waterway.
Source: “AOL Breaking”
