LONDON, United Kingdom (AFP) — Oil prices rallied and stock markets fell Tuesday as investors braced for further volatility after talks appeared to stall on ending the war in the Middle East and re-opening the Strait of Hormuz to tanker and cargo ship traffic.

Iran’s chief negotiator said Tuesday that Washington must accept Tehran’s latest peace plan or face failure, after United States President Donald Trump warned the truce in the Middle East war was on the brink of collapse.

Rising crude futures were also pushing up government bond rates, including in Britain, where political uncertainty soared as Prime Minister Keir Starmer clings to power, analysts said.