Tankers docked at the Phillips 66 Freeport Terminal in Freeport, Texas, US, on Friday, Jan. 16, 2026.
Mark Felix | Bloomberg | Getty Images
Crude oil prices jumped about 3% on Wednesday following a report that planned talks between the U.S. and Iran are on the verge of collapsing.
U.S. crude oil rose $1.80, or 2.9%, to $65.01 a barrel by 12:45 p.m. ET. Global benchmark Brent was up $1.88, or 2.8%, to $69.21 a barrel.
The move in oil prices came after Axios reported that Iran and the U.S. disagree on the location for talks planned for Friday.
The U.S. and Iran had agreed to meet in Istanbul with other Middle East countries participating as observers. But Tehran wanted to change the format to a bilateral meeting in Oman, two unnamed U.S. officials told Axios.
The U.S. considered the change but ultimately rejected it, the officials said. The Iranians were not willing to return to the original format in Istanbul, they said.
The officials told Axios that talks could still take place this week or next, if Tehran agrees to the original plan for the meeting.
The reported breakdown in talks comes after the U.S. military said Tuesday it shot down an Iranian drone that approached the USS Abraham Lincoln aircraft carrier. Iranian gunboats also tried to board a U.S. merchant vessel in the Strait of Hormuz, according to U.S. Central Command.
President Donald Trump has threatened to launch military strikes on Iran if it does not agree to a deal governing its nuclear program.
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