Crude prices moved higher on Thursday but retreated from session highs after a report said U.S. and Iranian negotiators in New York are discussing a phased agreement to defuse the standoff in the Persian Gulf.
Brent crude, the international benchmark, rose 2.5% to $105.69 a barrel. U.S. West Texas Intermediate futures climbed 2.3% to $94.30.
A senior Iranian official told Reuters that the most realistic way forward would be for Tehran to allow navigation through the Strait of Hormuz in exchange for the U.S. ending its naval blockade.
Earlier in the day, Brent had jumped about 5% to a session high of $108.23 after Iran-allied Houthi militants in Yemen launched a barrage of missiles at Saudi Arabia. Brent is up more than 17% in September, while U.S. crude has gained more than 10%.
Saudi armed forces intercepted six ballistic missiles fired by the Houthis at the cities of Yanbu and Taif, a military spokesperson said. Yanbu is a key oil export terminal on Saudi Arabia’s Red Sea coast.
U.S. President Donald Trump and Iranian President Masoud Pezeshkian both delivered defiant speeches at the U.N. General Assembly this week, even as their negotiators held talks on the sidelines of the gathering.
Trump said on Tuesday that he faced a “big decision” on whether to negotiate a deal with Iran or “annihilate” the Islamic Republic. Pezeshkian told U.N. members on Wednesday that Iran would not surrender to the U.S. and would continue to fight back “until our last breath.”
