Iran is suspending peace talks with the United States. Iran officials say its in protest of Israel's military action in Lebanon

Oil prices have surged after reports emerged that peace talks between Iran and the United States had collapsed, raising fresh concerns about global energy supplies. US crude oil climbed 5.5% to settle at $92.

The renewed strikes came amid the 'ongoing ceasefire," according to U.S. Central Command. President Trump had said an agreement with Iran was near.

Iran said that the Israeli attacks on Lebanon violated the ceasefire, prompting them to suspend peace talks with the U.S.

By Satoshi Sugiyama TOKYO, June 2 (Reuters) - The U.S. dollar steadied on Tuesday as markets took a wait-and-see approach to Middle East peace talks, with Lebanon announcing a limited ceasefire between Hezbollah and Israel,

The FTSE 250 ended down 179.99 points, 0.8%, at 23,245.78, while the AIM All-Share fell 2.01 points, 0.2%, to 819.24.Iranian news agency Tasnim reported on Monday that Tehran had suspended dialogue with mediators in protest against Israel’s expanding Lebanon offensive.

It is no surprise that the U.S.–Iran peace negotiations are over; the two sides had been talking past each other for a while. Nor is it surprising that the Iranians were the ones to call off the talks; they’re controlling the conflict—the whole relationship between the combatants—at this stage.

Asia-Pacific markets open mixed on Tuesday as investors weighed renewed uncertainty over U.S.-Iran peace negotiations.