Oil Prices Rebound on Trump's Rejection of Iran Framework

Oil prices rebounded over 2% on Thursday after reports that the Trump administration has no intention of returning to the terms of a June memorandum of understanding with Iran.

The development forced investors to scale back expectations that Middle East diplomacy would quickly restore energy flows through the Strait of Hormuz, which handles roughly one-fifth of the world's oil supplies.

Brent crude futures settled up $1.86, or 2.1%, at $89.70 a barrel, while West Texas Intermediate (WTI) rose $1.30, or 1.6%, to close at $83.53.

Treasury Secretary Scott Bessent said the economic measures imposed on Iran would reduce the need for future large-scale military action.