Oil Prices Surge Past $100 on Iran Uranium Standoff
CNBC reported Thursday that oil prices jumped sharply after Iran’s supreme leader ordered the country’s enriched uranium to stay within its borders. The directive immediately complicated fragile diplomatic efforts between Washington and Tehran.
Oil Breaks Above $100 on Iran Uranium News
West Texas Intermediate crude climbed nearly 4% to roughly $102 per barrel in morning trading. International benchmark Brent crude advanced close to 3%, clearing $108 per barrel. Both moves reflected market anxiety over a potential collapse of ceasefire negotiations. Two senior Iranian sources confirmed to Reuters that Ayatollah Mojtaba Khamenei issued the order barring any transfer of Iran’s uranium stockpile to a foreign nation. The directive directly contradicts a core U.S. demand. Dismantling Iran’s nuclear program has been described by President Donald Trump as a central objective of the ongoing military campaign.
A Fragile Ceasefire Under Pressure
Trump said earlier this week he had pulled back from imminent airstrikes at the request of Gulf Arab allies. He framed the pause as an opportunity for diplomacy to advance. However, he warned Wednesday that military action would resume if Iran failed to provide fully satisfactory answers in talks. Speaking at Joint Base Andrews, Trump told reporters the U.S. was ready to act but was willing to wait a few more days if lives could be saved by doing so. The ceasefire reached last month has produced little concrete progress, and the uranium directive narrows the negotiating space further.
Hormuz Blockade Deepens Supply Fears
The Strait of Hormuz remains largely closed due to Iran’s blockade of the vital waterway. The strait handles a substantial share of global seaborne oil exports. IEA chief Fatih Birol warned Thursday that the oil market risks entering a “red zone” this summer if the strait does not reopen. He noted that seasonal demand will accelerate stockpile depletion during peak summer travel months. The head of ADNOC separately cautioned that restoring oil flows to near pre-conflict levels could take up to four months even after hostilities end. Both assessments underscored how supply constraints could outlast any near-term diplomatic breakthrough.
What Comes Next
Markets will be watching closely for any shift in Iran’s position on uranium retention. Trump’s self-imposed diplomatic window is narrow. Any breakdown in talks would likely push crude prices even higher and extend disruptions through the Strait of Hormuz well into the second half of 2026.
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