Global oil prices climbed more than three per cent on Thursday after reports emerged that Iran’s supreme leader had directed that the country’s enriched uranium stockpile must remain within its borders, a development analysts say could complicate ongoing negotiations between Tehran and Washington.
As of Thursday morning trading, Brent crude advanced roughly three per cent to around $108.34 per barrel, while U.S. West Texas Intermediate crude rose close to four per cent to about $101.96 per barrel.
The market rally followed reports citing senior Iranian sources who said Ayatollah Mojtaba Khamenei had rejected proposals involving the transfer of enriched uranium outside Iran.
The development is being interpreted by traders and analysts as a potential setback to diplomatic discussions between Iran and the United States over Tehran’s nuclear programme and broader regional tensions.
The renewed market reaction came barely a day after oil prices fell sharply following comments by Donald Trumpsuggesting negotiations with Iran were approaching a critical stage.
Trump had earlier indicated that planned military action against Iran was temporarily suspended to allow additional time for diplomacy, while warning that the United States could resume military operations if negotiations fail to produce satisfactory outcomes.
Speaking to reporters on Wednesday, the U.S. president said Washington was prepared for possible military action but remained open to continued talks if progress could still be achieved diplomatically.
Despite the latest diplomatic efforts, market participants remain cautious as tensions continue to affect crude supply flows and shipping activity across the Middle East.
The Strait of Hormuz, a critical global oil transit route, remains under significant disruption following Iran-related security concerns and restrictions affecting vessel movement through the corridor.
Energy analysts said the oil market remains highly sensitive to developments surrounding Iran, with traders closely monitoring signals from both Washington and Tehran.
The International Energy Agency also warned that the global oil market could face severe supply pressure during the summer period if disruptions along the Strait of Hormuz persist.
According to the agency, stronger seasonal fuel demand combined with constrained supply flows could accelerate the depletion of global oil inventories in the coming months.
Separate market surveys conducted among energy strategists and asset managers showed expectations that crude prices may remain elevated over the next year as geopolitical risk premiums continue to influence the market.
Several analysts projected that Brent crude could average close to $100 per barrel over the next 12 months, while others warned that prolonged supply disruptions could push prices significantly higher.
Market observers also noted that traders have become increasingly reactive to developments involving Iran after repeated cycles of diplomatic optimism followed by renewed geopolitical tensions.
Industry analysts said oil prices are likely to remain volatile in the near term as negotiations continue and concerns over global supply security persist.