Oil prices and borrowing costs are expected to rise this week as tankers remain stranded in Persian gulf

• Middle East crisis live – latest updates

The failure of the US and Iran to reach a peace deal after marathon negotiations has put markets on alert for further oil and gas price rises.

With large numbers of oil tankers remaining stuck in the Persian gulf, the US vice-president, JD Vance blamed the collapse of the talks on Tehran’s refusal to abandon its nuclear weapons programme, while Iranian sources hit back at “excessive” demands from Washington.