Trump Signals End to Iran Deal Revival, Oil Prices Surge

Oil prices surged by 2% on Thursday after U.S. President Donald Trump confirmed that his administration is not interested in reviving a June agreement with Iran, sparking hopes of easing Middle East supply disruptions.

The Brent crude futures price rose to $89.70 per barrel, while U.S. West Texas Intermediate crude futures settled at $83.53 after Trump said the U.S. was focused on punishing Tehran economically and would penalize countries that do business with Iran.

A lack of progress in talks between Iran and other countries has led investors to scale back expectations of a diplomatic breakthrough, according to UBS analyst Giovanni Staunovo. Earlier this week, Washington announced 'toughest sanctions in history' on Iran, which Treasury Secretary Scott Bessent said would lessen the need for new major military operations.

The Strait of Hormuz, which handles about one-fifth of global daily oil and liquefied natural gas supplies, has seen a slight improvement in flows, with 10 commodity vessels transiting the waterway on Wednesday, up from recent lows but still below the 10-day average of 15.