Oil prices climbed sharply after peace talks between the United States and Iran failed to make progress. Global markets reacted quickly as fears of a wider Middle East conflict grew once again. Crude oil prices rose by nearly 3% and moved close to $109 per barrel. Investors worried that rising tensions could disrupt energy supplies from the Persian Gulf region. The jump in oil prices came after high-level talks between US President Donald Trump and Chinese President Xi Jinping ended without a clear peace agreement. The two leaders met in Beijing for a 48-hour summit focused on the ongoing conflict involving Iran and regional security. Many world leaders hoped the meeting would lead to a roadmap for peace. However, the talks ended without a formal plan. President Trump later said both countries agreed that Iran should never have nuclear weapons. He also stressed the need to keep the Strait of Hormuz open for global shipping and oil transport. Still, the lack of a final peace framework showed deep disagreements remain between Washington and Beijing over how to stabilize the region. The diplomatic deadlock quickly affected global energy markets. Traders feared that any future escalation could threaten oil shipments through key Middle East routes. At the same time, talks between Washington and Tehran also reached a serious impasse. Speaking to reporters aboard Air Force One, Trump said he rejected a peace proposal sent by Iran. He described parts of the document as completely unacceptable. “If they have nuclear in any form, I don’t read the rest,” Trump said during the flight back from China. The sharp comments added more tension to already fragile relations between the two countries. Iran’s foreign minister also expressed strong distrust toward the current US administration. He said he had “no trust” in Washington’s ability to create a fair peace agreement. The collapse in negotiations overshadowed a separate diplomatic development involving Israel and Lebanon. The US State Department announced a 45-day extension of the ceasefire agreement between Israel and Lebanon. Officials described recent talks in Washington as highly productive. The extension aims to prevent a larger conflict along the Israeli-Lebanese border, where fighting has continued despite earlier ceasefire efforts. Even with the extension, violence has not fully stopped. Israeli airstrikes in southern Lebanon caused several deaths. One strike hit a civil defense center in Harouf and killed three paramedics. At the same time, Hezbollah launched multiple counterattacks against Israeli military positions using drones and artillery fire. The continued fighting has raised concerns that the ceasefire could break down again if tensions keep rising. Global investors are now closely watching the region. Many fear that a prolonged conflict could threaten critical infrastructure across the Persian Gulf. Security experts are especially focused on oil facilities, shipping lanes, and underwater telecommunications cables that support global internet traffic. The Strait of Hormuz remains one of the world’s most important energy routes. A large share of global oil exports passes through the narrow waterway every day. Any disruption there could push fuel prices even higher and create wider economic pressure around the world. Financial markets have already shown signs of concern. Energy stocks moved higher after oil prices surged, while some investors shifted money into safer assets. Analysts say the coming weeks could be critical for the global economy. Much depends on whether diplomatic talks resume or military tensions continue to grow. The latest developments also highlight how closely world markets are tied to political events in the Middle East. For now, traders, governments, and investors remain on alert as uncertainty continues to shape global energy prices and regional security.