The collapse of US-Iran talks has raised fears of a prolonged energy shock in global markets. Oil and gas traders are now watching closely for further price rises after high-level negotiations failed to produce a deal. The talks, which lasted for hours, ended without agreement between the United States and Iran. US Vice-President JD Vance blamed Tehran for refusing to drop its nuclear programme. Iranian officials said Washington made excessive demands that blocked progress. Vance left Islamabad after more than 20 hours of discussions with Iranian representatives. He said the US had clear red lines. Hopes for a quick end to tensions faded during the weekend. Energy markets reacted quickly. A weekend crude oil forecast from IG suggested prices could open near $98 per barrel, up from $96.50 before the talks ended. Analysts warned of volatility when trading resumes. IG analyst Tony Sycamore said markets could face a rocky start. JPMorgan Chase analysts also expect oil prices to stay above $100 per barrel in the second quarter before easing later in the year. Oil prices have already been unstable. Brent crude moved between $72 before the conflict and a peak above $119 during fighting. It recently settled near $94 after a brief ceasefire. Tensions around the Strait of Hormuz have added pressure. The waterway is vital for global oil transport. Reports say some tankers remain stuck in the Gulf, raising supply concerns. US President Donald Trump said the US could block ships entering or leaving the strait. He also warned of action against Iranian mines and threats to vessels. Iran responded by claiming control over the passage and demanding payment in its currency for transit. The threats have increased concerns about inflation. Higher oil and gas prices could affect transport, food, and energy costs worldwide. Central banks are now reviewing interest rate plans as inflation risks rise. In Ireland, rising living costs have already triggered protests. Economists warn that prolonged energy shocks could deepen social pressure in several countries. Mohamed El-Erian of Allianz said uncertainty is now driving global markets. He warned that both oil prices and borrowing costs could rise if diplomacy does not resume quickly. He added that stock markets will depend on whether investors see a path back to talks. Without progress, both markets and governments could face more stress. Saudi Arabia said it had restored key oil facilities after earlier attacks. This helped stabilize supply fears slightly, but risks remain high across the region. Some analysts believe the situation may not escalate into full war again. Economist Wei Yao said markets may see ongoing low-level tensions rather than full disruption. The International Monetary Fund is expected to discuss the impact of the conflict at its upcoming meetings. It may present weaker growth forecasts and higher inflation scenarios. Shipping disruption is becoming a growing concern for traders. Delays in the Gulf are increasing transport costs. Insurance premiums for oil cargoes are also rising due to higher risk. Financial institutions say interest rate plans may change. Higher energy prices can keep inflation elevated for longer. This may force central banks to delay rate cuts or consider increases. Overall risk in global markets is rising. Investors are now adding a higher risk premium to oil and gas prices. This reflects uncertainty over future talks and possible escalation.