Oil prices rose on Thursday as fresh signs of trouble in Iran peace talks as the parties hit a wall over enriched uranium.
WTI crude climbed 2.2% to $100.40 while Brent gained 1.8% to $106.90 as reports emerged that Iran’s Supreme Leader, Mojtaba Khamenei, has drawn a hard line on one of Washington’s key demands: the removal of Iran’s stockpile of highly enriched uranium.
According to Reuters, Khamenei issued a directive that near-weapons-grade uranium must remain inside Iran, complicating already fragile negotiations aimed at ending the U.S.-Israeli conflict.
Uranium has been one of the major pressure points in negotiations.
Israeli officials have reportedly said that President Trump previously assured Israel that any agreement would include removing Iran’s enriched uranium stockpile from the country. Iranian officials, meanwhile, appear increasingly unwilling to make that concession.
“The Supreme Leader’s directive, and the consensus within the establishment, is that the stockpile of enriched uranium should not leave the country,” an anonymous Iranian source told Reuters.
A White House spokeswoman responded by telling Reuters, “President Trump has been clear about the United States’ red lines and will only make a deal that puts the American people first.”
Iranian leadership reportedly believes sending material abroad could leave the country vulnerable if hostilities resume.
Reuters reported there remains “deep suspicion” among senior Iranian officials that the current pause in fighting could simply be a tactical timeout before additional strikes.
Markets have repeatedly treated any suggestion of progress as a reason to sell oil, and any reminder of reality as a reason to buy it right back.
The problem for traders is that the underlying supply picture has not improved very much.
The Strait of Hormuz remains constrained, peace talks remain shaky, and supply disruptions tied to the conflict continue hanging over the market nearly three months after fighting began.
By Julianne Geiger for Oilprice.com
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