Global oil prices climbed on Thursday as renewed tensions surrounding Iran’s uranium programme weakened expectations of an immediate diplomatic breakthrough that could restore full tanker movement through the strategic Strait of Hormuz.
Brent crude futures, the global oil benchmark, rose 1.9 percent to $106.98 per barrel, while U.S. West Texas Intermediate (WTI) crude advanced 2.7 percent to $100.84 per barrel, extending a rally driven by escalating geopolitical uncertainty in the Middle East.
Investor sentiment turned cautious after reports emerged that Mojtaba Khamenei had directed that Iran’s stockpile of near weapons-grade uranium should not be transferred outside the country under any potential peace arrangement.
According to Reuters, the directive has complicated ongoing diplomatic efforts involving the United States and Israel aimed at ending months of military confrontation and reopening critical regional oil supply routes.
The report also indicated that Donald Trump had assured Israeli allies that Iran’s highly enriched uranium reserves would be removed from the country under any future settlement agreement. However, the White House later dismissed the report as inaccurate, with officials involved in negotiations reportedly describing the claims as false.
Markets reacted nervously to the conflicting signals, particularly as the ceasefire was established following the joint U.S.-Israeli offensive against Iran in late February remains under pressure.
Although Trump recently said negotiations were in the final stages of a potential peace framework, he also warned of possible renewed military action should diplomatic talks collapse.
“We’re going to do some things that are a little bit nasty,” Trump reportedly said, underscoring the fragile nature of the ongoing negotiations.
Iran has also maintained a hardline position, stating that while it is reviewing Washington’s latest proposals, it remains prepared to retaliate against further military strikes with what officials described as a “crushing barrage.”
Further heightening market anxiety, Tehran has launched a new “Persian Gulf Strait Authority” to oversee shipping activities in the Strait of Hormuz, after earlier outlining plans to impose toll charges on vessels using the waterway.
The Strait of Hormuz, located off Iran’s southern coast, remains one of the world’s most strategically important energy corridors, with roughly one-fifth of global oil supplies transiting through the channel.
Its partial closure over recent weeks has severely disrupted tanker movements and emerged as a key catalyst behind the sharp escalation in global crude prices. Prior to the outbreak of hostilities, Brent crude had traded at around $70 per barrel.
Although shipping data earlier this week showed that a limited number of vessels had resumed passage through the strait, investors continue to monitor developments closely for any indication of a broader reopening.
Meanwhile, supply concerns were further amplified by fresh U.S. inventory data showing a larger-than-expected decline in crude stockpiles.
