Brent oil looks set to move above $100 and potentially stay there for a while. That scenario would change the game for investors.

This is the warning from Nigel Green, CEO of the global financial advisory giant deVere Group, after reports that Iran has halted negotiations with the US and threatened to close the Strait of Hormuz, sending oil prices sharply higher and raising fresh doubts about how quickly the conflict can be brought under control.

The latest escalation comes as markets are being forced to confront a possibility many had been reluctant to fully embrace: that the conflict could last far longer than expected, keeping pressure on energy prices and inflation worldwide.

"Iran pulling out of talks changes the picture. The market has spent months assuming there would be a diplomatic exit. Today that assumption looks much harder to defend," stated Green.

"Oil is already reacting, and I think it goes higher. I can’t see this being resolved quickly," he noted.

Oil prices surged after Iran's state-affiliated Tasnim news agency reported that Tehran would stop indirect negotiations with Washington and move toward closing the Strait of Hormuz in response to what it described as violations of the ceasefire agreement.

The development has heightened concern because the Strait of Hormuz remains one of the world's most important energy corridors, carrying around one-fifth of global oil consumption and a significant share of international LNG supplies.-TradeArabia News Service