Oil prices finished slightly lower on Thursday as investors closely monitored ongoing negotiations between the United States and Iran over a potential agreement that could ease tensions in the Middle East and reopen the Strait of Hormuz.

Brent crude settled around $100 per barrel, down roughly 1% for the session, while U.S. West Texas Intermediate (WTI) crude closed near $95 a barrel after fluctuating throughout the day.

Crude markets initially came under heavy pressure earlier in the session, with prices sliding as much as 5% after reports suggested Washington and Tehran were moving closer to a diplomatic breakthrough. Sentiment later shifted after comments from Iranian officials indicated that major disagreements still remain.

Mohsen Rezaei, a senior member of Iran’s Expediency Council, said Tehran would not accept what he described as unrealistic conditions tied to reopening the Strait of Hormuz. According to Iranian state media, Rezaei also stated that the United States should compensate Iran for damages caused during the conflict before any final agreement can be reached.

Iranian Foreign Ministry spokesperson Esmaeil Baqaei confirmed that Tehran is continuing to review the U.S. proposal and is expected to deliver its official response through Pakistani mediators in the coming days. In comments shared on social media, Baqaei stressed that meaningful negotiations must be based on genuine dialogue rather than pressure or coercion.

U.S. President Donald Trump said Wednesday that the military campaign known as “Operation Epic Fury” could come to an end if Iran accepts the proposed framework. Trump added that a successful agreement would allow the Strait of Hormuz to fully reopen to international shipping, including Iranian vessels.

However, the president also warned that military action could intensify if negotiations collapse, highlighting the fragile nature of the discussions.

According to reports from Axios, U.S. and Iranian officials are nearing a preliminary 14-point memorandum of understanding designed to end the conflict and create a roadmap for future nuclear negotiations. The proposed framework reportedly includes the easing of restrictions in the Strait of Hormuz, a temporary halt to Iran’s nuclear enrichment activities, and the lifting of certain U.S. sanctions alongside the release of frozen Iranian assets.

Analysts say the direction of oil prices will continue to depend heavily on whether diplomatic efforts succeed. Market participants remain focused on how long geopolitical tensions could impact global energy supply, inflation risks, and expectations for future Federal Reserve policy decisions.
 

 
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