Oil markets react to Iran talks

The failure to reach a deal has put significant pressure on wholesale energy costs, with analysts warning of a return to 1970s-style stagflation.

Several supertankers were reported making last-minute U-turns in the Persian Gulf as news of the deadlock broke.

The uncertainty is expected to weigh heavily on stock markets as investors pivot toward safe-haven assets.

Finance ministers gathering for IMF meetings in Washington will now face the daunting task of limiting the economic fallout from what is being described as the biggest oil shock in decades.