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US Oil Update: Crude Gains as Iran Reportedly Rejects US Nuclear Demand

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Oil futures rebounded more than 3% on Thursday as Tehran hardened its negotiating position, ending brief optimism on Wednesday over a potential peace deal.

Front-month West Texas Intermediate crude futures gained over 3.6% to $101.79 per barrel, while Brent futures rose 3% to $108.24/bbl.

Supporting prices, a Reuters' report citing senior Iranian insiders revealed that Iran's Supreme Leader, Ayatollah Mojtaba Khamenei, issued a strict directive banning the export of the country's near-weapons-grade enriched uranium.

This directly counters a non-negotiable demand from US President Donald Trump, who had previously assured Israel that any comprehensive peace agreement would mandate the complete removal of highly enriched material from Iranian territory.

"Relatively speaking, and using US oil inventory as a barometer, Brent will be above $120 in a month," HFI Research noted.

On the supply side, the US Energy Information Administration noted that US crude oil inventories decreased by 7.9 million barrels to 445 million barrels for the week ended May 15.

Traders remain caught between deepening fundamental supply deficits and shifting political rhetoric.

Only a day prior, crude prices dipped after President Trump noted that negotiations were in their "final stages" giving risk managers hope for a swift resolution.

However, analysts at ING pointed out that while energy markets have been repeatedly roiled by hollow diplomatic breakthroughs, trading sentiment remains on edge because any prolonged breakdown in talks threatens catastrophic shortages.

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EMEA Natural Gas Update: Futures Rise as Iran Hardens Stance on Enriched Uranium

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EMEA Oil Update: Oil Rebounds as Iran Reportedly Hardens Uranium Stance

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Market Chatter: Saudi Arabia Oil Export Income Hits 3-Year High in March as Prices Surge

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