Oil rebounded above $89 as Trump rejects Iran ceasefire terms, reviving risk premium

Global crude oil futures rallied on Thursday, snapping a three-session losing streak to settle around 2% higher as energy markets reinflated geopolitical risk premiums following statements that Washington will not return to previous ceasefire terms with Iran.

International benchmark Brent crude gained $1.86, or 2.12%, to settle at $89.70 a barrel.

US West Texas Intermediate (WTI) climbed $1.30, or 1.58%, to close at $83.53 a barrel.

The rebound reversed the week’s downward momentum after reports confirmed US President Donald Trump has no interest in reviving the June memorandum of understanding with Tehran, dashing market expectations of a near-term diplomatic breakthrough. Bullish sentiment was reinforced by Washington’s reaffirmation of strict secondary sanctions over bilateral negotiations, prompting traders to reprice regional supply security risks amid warnings from Iranian officials over retaliatory measures against US interests.

Physical supply dynamics through the Persian Gulf remain structurally tight despite ongoing regional mediation efforts. Daily transits through the Strait of Hormuz improved to 10 commodity carriers on Wednesday—recovering from recent historic lows but remaining below the 10-day average of 15 vessels.

While supply upside was partially capped by Kuwait restarting crude units at its 615,000-bpd Al-Zour refinery at 60% capacity, persistent chokepoint friction and stalled negotiations continue to underpin baseline market support.

Written by: Aiman Haikal