Mohammad Bagher Ghalibaf resigned as Iran's parliament speaker and lead negotiator on Friday. His departure followed an official reprimand for attempting to include nuclear issues in peace talks with the United States.
Hardliners within Iran claimed victory following the resignation. This shift threatens to derail near-term resolutions to the ongoing naval conflict.
Brent crude futures surged over 4%. Prices reached $106.41 a barrel. Markets anticipate prolonged disruptions to oil transit through the Strait of Hormuz.
Tehran may adopt a more confrontational stance without the moderate negotiator. This geopolitical risk increases volatility for energy stocks and ETFs like VDE.