Brent crude and WTI snapped a three-day losing streak on Thursday after President Trump told mediators he has no interest in reviving the terms of a June ceasefire memorandum with Iran. The White House confirmed no active negotiations are underway, while Iran threatened retaliation against US-linked shipping and warned it would blacklist vessels breaching its new Hormuz transit rules.
Oil prices reversed higher on Thursday after a Wall Street Journal report said Trump has repeatedly told mediators he has no interest in reviving the terms of the June memorandum of understanding with Iran, dashing hopes of an imminent easing of Gulf supply constraints. Brent crude settled up roughly 2% near $90 a barrel, while WTI settled up around 1.5% near $84, both benchmarks snapping a three-day losing streak.
In later trade, Brent for October rose 2.1% to $89.70 a barrel, while the more active November contract climbed 1.9% to $88.62, and WTI for October rose 1.7% to $83.64 a barrel.
White House rules out renewed Iran talks
White House Press Secretary Karoline Leavitt said Thursday morning that the US isn't negotiating with Iran and that its naval blockade on Iranian ports will remain in effect. According to InvestingLive, Trump told reporters the US has no interest in speaking with or meeting Iranian counterparts, reiterating that "all options remain on the table" as officials frame the current approach as economic pressure rather than renewed diplomacy.
That stance followed Monday's rollout of what Washington called the toughest sanctions in its history against Iran, with Treasury Secretary Scott Bessent suggesting the measures could reduce the need for further military action.
Iran threatens retaliation, warns on Hormuz transit
Iran's top security official warned that Tehran would target US military and economic interests, including shipping, energy, insurance and financial assets, if Washington escalated further during the ongoing mediation push. Tehran also signalled it would blacklist vessels that breach its newly imposed Hormuz transit rules.
Diplomatic efforts continued on the margins. Qatar's prime minister travelled to Tehran on Thursday to try to relaunch talks, arriving ahead of the six-month anniversary of the conflict. Qatari officials separately met with Iran's Foreign Minister Abbas Araghchi to discuss a proposed interim framework for Hormuz's status.
Hormuz flows hold up despite the standoff
Still, crude oil keeps moving through the chokepoint. Oil traders monitoring cargo activity estimate about 6 million to 8 million barrels a day are now being shipped through the Strait of Hormuz, which carried around a fifth of global daily oil and LNG supply before the conflict. Vessel traffic through the strait improved slightly to roughly 10 transits versus a 10-day average of about 15.
Kuwait's state oil refiner confirmed its Al-Zour refinery, hit by Iranian drones in May, has restarted all three crude units at about 60% capacity. A tanker was also hit by an unknown projectile in Hormuz this week, an incident now under investigation by local authorities, UK Maritime Trade Operations said.
Oil is up more than 40% this year after the six-month conflict launched by the US and Israel in late February crimped flows from the Persian Gulf, and separate tensions between Russia and Ukraine are adding a further layer of geopolitical risk to the outlook.
Sources: InvestingLive, Rigzone
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