Brent crude tops $80 as US-Iran talks canceled, Israel hits Lebanon

Brent crude futures climbed above $80 per barrel on Friday as investors weighed renewed geopolitical risks following the cancellation of planned US-Iran talks in Switzerland and Israeli military strikes in southern Lebanon that killed at least two dozen people, even as shipping conditions showed signs of improvement in the strategic Strait of Hormuz.

Talks canceled at Burgenstock

The Swiss Foreign Ministry announced that discussions planned at Burgenstock would not proceed after the White House confirmed Vice President JD Vance would not travel to Switzerland. Logistical arrangements for anticipated technical talks with Iranian officials remained unresolved, prompting Geneva to call off the meeting, according to the ministry's statement.

The cancellation has raised questions regarding the next phase of diplomacy following the interim peace agreement between Washington and Tehran. That pact ended a prolonged conflict that triggered the largest supply disruption on record when hostilities erupted in late February, though efforts to establish a permanent settlement have encountered repeated obstacles.

Israeli attacks kill 24 in Lebanon

Israeli forces conducted bombing and artillery attacks on Nabatieh city and surrounding towns in southern Lebanon early Friday, Lebanon's National News Agency reported. The strikes killed at least 24 people and wounded several others, the agency stated, compounding concerns about regional stability as cross-border tensions persist.

Hormuz shipping lanes reopen

Market participants have focused on normalization efforts in the Strait of Hormuz despite renewed geopolitical tensions. The US Central Command announced it had lifted restrictions on traffic to and from Iranian ports and coastal waters, while the Joint Maritime Information Center advised vessels to transit closer to Oman's coastline to reduce exposure to mine risks.

Tankers carrying previously stranded crude began exiting the waterway on Thursday, and Kuwait's oil ministry stated the country would begin increasing production. The improved shipping outlook has limited oil's gains, with prices erasing nearly all increases recorded since the Middle East conflict began in late February and remaining on course for a sharp weekly decline.