Iran talks failed and things got worse after top officials from the IAEA (International Atomic Energy Agency) were rejected to look at the secret nuclear sites in Tehran, Iran.

iran nuclear plant

“During both the first and second round of discussions, the agency team requested access to the military site at Parchin. Iran did not grant permission for this visit to take place,” the Vienna-based IAEA said in a statement after the Feb 20-21 talks, according to Reuters.

The result of this failure seems likely to add an effect to the already growing tension between Iran and Western powers, as these powerful countries in West have enforced severe sanctions on the major oil producer in recent months.

Read how oil prices are being effected due to this ongoing situation between Iran and West (via Bloomberg):

Oil traded near the highest level in nine months as concern that tension with Iran will disrupt supplies countered speculation the global economy may falter and curb fuel demand.

Futures were little changed after sliding as much as 0.5 percent. The International Atomic Energy Agency said talks over Iran’s nuclear program failed, while an Iranian general threatened military action. Prices fell earlier as crude’s relative strength index signaled prices may have risen too quickly and a report showed manufacturing in China may shrink a fourth month. U.S. oil stockpiles climbed 1.5 million barrels last week, according to a Bloomberg News survey.

“The price of crude has more to do with what’s happening in Iran and the Middle Eastern risk premium,” said Jonathan Barratt, chief executive of Barratt’s Bulletin, a commodity markets newsletter in Sydney, who sees resistance for New York crude at about $106 a barrel. “While the stalemate is there, the premium exists. Demand forecasts for the U.S. remain neutral to bearish.”

Oil for April delivery was at $106.17 a barrel, down 8 cents, in electronic trading on the New York Mercantile Exchange at 5:22 p.m. Sydney time. It earlier slid as much as 54 cents. Front-month prices advanced 2.5 percent yesterday to the highest close since May 4. U.S. floor trading was shut on Feb. 20 because of the Presidents’ Day holiday and trades were booked with yesterday’s transactions. Prices are 13 percent higher in the past year.

Brent oil for April settlement was down 11 cents at $121.55 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract’s premium to New York-traded West Texas Intermediate was at $15.38. It reached a record $27.88 on Oct. 14.

What will be the result of this ongoing situation? Will the powers in West be surrendering themselves before Iran for it’s most demanded commodity – oil, or will they be taking any other major step to resolve this problematic situation?  What do you think, drop your views in the box below.