Oil prices jump 2.1% as Trump stance dims hopes for Hormuz reopening

Oil prices ended a three-session decline on Thursday after reports that the Trump administration would not revive the terms of a June memorandum of understanding with Iran, reducing expectations that diplomacy could quickly restore energy flows through the Strait of Hormuz. Brent crude futures rose $1.86, or 2.1%, to $89.70 a barrel, while West Texas Intermediate gained $1.30, or 1.6%, to $83.53. President Donald Trump said the United States was not negotiating with Iran, and White House Press Secretary Karoline Leavitt said talks would not resume unless Tehran returned to the table in a way Washington considered meaningful. The Strait of Hormuz, a vital oil-shipping chokepoint, handles roughly one-fifth of global oil supplies, but Kpler recorded only 10 commercial vessels crossing on Wednesday, below its 10-day average of 15. Qatar and Iran discussed an interim framework for the strait, though Tehran has said navigation arrangements would not mean an immediate full reopening. The United States has imposed what it called its most severe sanctions ever on Iran, while Iran's parliamentary national security committee chairman Azizi called them inhumane and hostile. Supply concerns also include the recovery of Kuwait's Al-Zour refinery, operating at 60% after restarting all three crude units, and risks linked to tensions between Russia, Ukraine and Britain. Analysts say stalled diplomacy, restricted shipping and pressure on Iran could support oil prices, while meaningful progress by Qatar or Oman could quickly remove the geopolitical premium. Near-term focus is on talks, Hormuz traffic and the intensity of US pressure on Iran.

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