trump, iran, strait of hormuz, US, crude, brent
Oil/Chemical Tanker “Bald Man” in the Port of Fujairah as the US-Israeli conflict with Iran limits maritime traffic in the Strait of Hormuz in Fujairah, United Arab Emirates, May 6, 2026.
Amr Elfiki | Reuters
Oil prices rose in choppy trading on Thursday as investors continued to assess the latest developments in the Middle East amid concerns about renewed tensions between Iran and the United States.
International comparison Brent July crude oil futures rose 0.91% to $102.19 per barrel. WE West Texas Intermediate June futures contracts rose 1.23% to $96.25 per barrel.
Scott Chronert, Citi’s U.S. equity strategist, said the duration of the conflict will impact the broader economy.
“The duration of the conflict and the implication that oil prices will stay higher for longer is a big deal as it relates to future growth expectations in many parts of the market and also how it affects the Fed’s thinking in terms of interest rate dynamics,” Chronert said on CNBC’s Squawk Box.
Despite reports that Washington and Tehran are nearing an agreement to end the war, President Donald Trump said on Wednesday that Iran would be bombed “at a much higher level” if it does not agree to a peace deal, raising market concerns that Iran-U.S. talks to end the war remain fragile.
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“If Iran agrees to do what was agreed upon, which is perhaps a big assumption,” Trump said in a statement. Real Social post.
Trump wrote that if this were to happen, the US naval blockade of Iranian ports in the Gulf of Oman would “allow the Strait of Hormuz to be open to everyone, including Iran.”
However, Trump added, “If they don’t agree, the bombing will begin, and unfortunately it will be at a much higher level and intensity than before.”
Trump’s comments came after a report axios It was stated that the USA and Iran are close to signing a one-page, 14-article memorandum of understanding that will end the war and create a framework for further negotiations.
Following Trump’s Truth Social statement, Iranian Foreign Ministry spokesman Esmaeil Baqaei told media outlets on Wednesday that Tehran was still reviewing the proposal and would submit its response to mediators in Pakistan.
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“So ‘good faith’ is required, that is, ‘negotiations’ are not ‘discussion’, nor are they ‘dictation’, ‘deception’, ‘extortion’ or ‘pressure’,” Baqaei wrote.
Former U.S. Ambassador to Oman Marc Sievers said Wednesday on CNBC’s “Access Middle East” that fully reopening the Strait of Hormuz is an “immediate focus.”
“Our immediate focus is to fully reopen the Strait of Hormuz, to ensure that all international trade and energy flows smoothly, tankers full of oil and such are blocked, and there will be no charges imposed on tankers passing by the Iranian Revolutionary Guard,” he said.
— CNBC’s Chloe Taylor and Kevin Breuninger contributed to reporting
