Oil prices rose on Wednesday as President Donald Trump insisted that talks with Iran had not broken down. His statement came hours after the Pentagon confirmed new military strikes. It left markets to weigh diplomacy against rising supply risks.
Oil Climbs as Donald Trump Says U.S.-Iran Negotiations Are Underway
West Texas Intermediate futures for July delivery gained more than 1.3% to settle at $94.99 per barrel. Brent crude, the international benchmark for August delivery, advanced 1.1% to $97.07. The gains reflected anxiety over the Strait of Hormuz, through which roughly a fifth of global crude supply normally passes.
Oil prices are rising, following a chaotic 24 hours of contradictory signals from Washington and Tehran. U.S. Central Command said on Tuesday it had intercepted multiple Iranian ballistic missiles and drones overnight. The U.S. also launched defensive strikes after what it called “attempted attacks.” The language signaled an escalation in direct military contact between the two adversaries.
Hours later, Trump posted on Truth Social. “Fake News Reports that the Islamic Republic of Iran, and the U.S.A., stopped speaking a few days ago are false and erroneous,” he wrote. The post pushed back against Iran’s Fars news agency, which had reported a breakdown in messages between the two capitals. State-linked Tasnim had gone further the day before, claiming Iranian negotiators would cease indirect talks entirely and pursue the closure of the Strait of Hormuz. Such a move would choke tanker traffic and send crude prices higher.
Secretary of State Marco Rubio addressed the situation during a testimony to the Senate Foreign Relations Committee. He told lawmakers that “there is the prospect” Iran “could negotiate aspects of their nuclear program.” The remark was the first public indication from a senior official that the scope of talks might widen beyond immediate hostilities.
Still, the physical toll on the region’s energy infrastructure is already severe. Fitch Group analysts wrote on Tuesday that the Iran war had triggered widespread disruption across the Middle East’s oil and gas sector. Exports have collapsed, production has been shut down, and repeated strikes on facilities have left billions of dollars in damage. Repair timelines continue to lengthen.
