Crude oil prices opened the week more than 1.5% higher, rising above $78 per barrel as investors once again questioned the prospects for a durable peace agreement between the US and Iran in the Middle East. Although the two sides resumed talks in Switzerland, last week’s memorandum of understanding appears to have collapsed. Iran accused the US of failing to secure a ceasefire in Lebanon and announced it had once more halted traffic through the strait. Tehran also stated that Sunday’s talks would exclude substantive issues, including its nuclear program. At the same time, President Trump warned of renewed US strikes unless Iran reins in its proxies in Lebanon. He further threatened to impose tolls if no deal is reached and cautioned Tehran against closing the Strait of Hormuz.