Iran Suspends US-Iran Talks — Demands Israeli Withdrawal From Lebanon; Threatens Full Hormuz Closure + Bab al-Mandeb; Oil Surges 7% — Day 94

Iran's state-affiliated outlet Tasnim reported on June 1, 2026 (Day 94) that Iranian negotiators would stop exchanging messages with the US through intermediaries entirely. The announcement stated: 'No dialogue will take place' until Israel fully withdraws from occupied areas in Lebanon and halts all attacks in both Lebanon and Gaza. Iran simultaneously threatened to 'completely block the Strait of Hormuz and activate other fronts including the Bab al-Mandeb Strait.' The announcement sent Brent crude surging more than 7% — from approximately $94/bbl to ~$97–100/bbl — reversing the recent downward trend driven by deal optimism. The suspension followed Iran's reading of Israeli operations on Days 92–94 as fundamental ceasefire violations: the IDF crossed the Litani River (Day 92), captured Beaufort Castle (Day 93), and killed 12+ Lebanese in continuing strikes (Day 94). Iran's position linked the nuclear/Hormuz diplomatic track explicitly to the Lebanon front for the first time, creating a direct linkage between Israel's military campaign and the fate of US-Iran negotiations. The announcement effectively placed the June 2–3 Doha round in doubt. CNBC and The Hill confirmed the development. PBS NewsHour framed it as 'Next round of U.S.-Iran talks in doubt as tensions rise.'