Oil prices jump as Trump rejects return to Iran ceasefire terms
Brent crude rose 2.5% to $90.02 after reports said Trump won't revive the June Iran deal, dimming hopes of a diplomatic breakthrough.
Oil prices rallied sharply on Thursday after reports indicated the Trump administration has no interest in reviving a memorandum of understanding reached with Iran in June. Brent crude futures rose $2.18, or 2.5%, to $90.02 a barrel, while U.S. West Texas Intermediate crude gained $1.61, or 1.9%, to $83.84.
The jump came as investors reassessed the likelihood of a diplomatic breakthrough that could ease restrictions on Middle East oil flows. The White House confirmed that no negotiations are currently taking place between the U.S. and Iran, though it said all options remain on the table.
The development complicates a flurry of diplomatic efforts this week, including a visit by Qatar's prime minister to Tehran aimed at relaunching talks. The visit comes just before the six-month anniversary of the U.S.-Israeli war with Iran.
Tensions remain high, with Iran's top security official Mohsen Rezaei warning that Tehran would strike U.S. military and economic interests if Washington engaged in "mischief" during the Qatari-mediated meetings. The two sides also traded recriminations over Washington's pledge to intensify economic pressure on Iran.
On Monday, the U.S. announced what it called the "toughest sanctions in history" on Iran, a move Treasury Secretary Scott Bessent suggested would reduce the need for major new military operations. Ebrahim Azizi, head of the Iranian parliament's national security committee, dismissed the sanctions as an "inhumane and hostile act" that had lost their effectiveness.