A pump jack is seen in a field March 18, 2026 in Pecos, Texas.
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Oil prices rose Thursday after Iran indicated it did not intend to hold direct negotiations with the United States, even as a U.S. proposal to end the war is under review by senior officials in Tehran, according to remarks by the Islamic Republic’s foreign minister.
International reference Brent crude futures added 1.95% to $104.21 a barrel, while U.S. West Texas Intermediate Futures rose 2.05% to $92.17 a barrel.
Iranian Foreign Minister Abbas Araghchi told state media on Wednesday that exchanges between the two countries through mediators did not mean “negotiations with the United States”, Reuters reported.
Iranian state media reported that Tehran would reject the US ceasefire offer and had instead set its own conditions to end the conflict.
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These latest comments come as Washington and Tehran continue to offer different versions of the state of negotiations.
Trump said Tuesday that the United States and Iran were “in negotiations right now” and suggested Tehran was eager to strike a deal, even though the Islamic Republic has denied any direct negotiations. Speaking in the Oval Office, Trump said he had backed away from his earlier threats to strike Iran’s energy infrastructure “based on the fact that we are negotiating.”
Analysts at investment bank TD Securities said the latest oil shock is unlikely to trigger an aggressive policy response from the Federal Reserve.
As markets began pricing in the risk of rate hikes amid high inflation expectations, TD said the Fed would likely remain in “wait and see” mode, with its leaders still inclined to cut rates later in 2026.
“The Fed will ignore the energy shock” as long as long-term inflation expectations remain anchored and second-round effects remain contained, the bank added.