US oil prices climbed on Thursday after President Donald Trump suggested that reaching an agreement with Iran was not a priority, rekindling concerns about potential disruptions to Middle Eastern oil supplies. Brent crude rose 1.9% to $94.48 per barrel, while West Texas Intermediate futures gained 2% to $88.19 per barrel, according to the latest figures.
Trump stated on Truth Social that fresh negotiations with Iran were not necessary. "We don't need a deal with Iran. Those days have long since passed. We've got their money, Hundreds of Billions of Dollars, and we've got their Strait!" he wrote. The comments reversed the direction of oil markets in recent weeks. Oil prices had fallen sharply following Trump's post-election statements suggesting that further military action against Iran appeared unlikely and that talks to end the conflict were progressing. WTI has declined 16% during November, and Brent has fallen 20%.
Analysts suggested that markets may have misjudged the situation. John Kilduff, a partner at Again Capital, told CNBC that investors had moved too quickly to assume the fighting would end. "The market may have gotten ahead of itself on pricing in a cessation of hostilities," he said, adding that renewed uncertainty about a deal would increase the security premium built into oil prices. Kilduff warned that Trump's assertion about US control of the Strait of Hormuz could provoke Iranian retaliation against shipping, extending supply disruption risks.
Andy Lipow, president of Lipow Oil Associates, outlined the competing interests of both sides. He noted that Iran seeks an end to the economic blockade, lifting of sanctions and a regional ceasefire, while the US demands Iran eliminate its nuclear stockpile and permit unrestricted shipping through the Strait of Hormuz. "In any event, it does not seem to me that either side's negotiating position has changed," Lipow said. He suggested that Trump may believe prolonged economic pressure will force Iran to either negotiate or face internal collapse, though Iran might pursue continued attacks on infrastructure to force the president back to the negotiating table.
For US oil consumers and businesses dependent on energy supplies, the shift toward higher crude prices means potential increases in fuel costs and transportation expenses could emerge if tensions remain elevated.