Oil prices jump more than 3% after Iran supreme leader says uranium must remain in country

Oil prices experienced a significant increase on Thursday following reports that Iran's supreme leader has prohibited the export of enriched uranium from the country. This development is expected to further complicate ongoing diplomatic negotiations with the United States.

As of 9:15 a.m. ET, U.S. crude oil prices had surged nearly 4% to $101.96 per barrel, while the international benchmark, Brent crude, saw an approximate 3% increase to $108.34.

According to two senior Iranian sources speaking to Reuters, Ayatollah Mojtaba Khamenei has decreed that Iran's enriched uranium must remain within its borders. This directive aligns with President Donald Trump's objective of dismantling Iran's nuclear program, a central focus of U.S. foreign policy.

Earlier this week, Trump indicated that he had halted imminent airstrikes on Iran to allow for additional diplomatic efforts at the request of U.S. allies in the Gulf region. Since the fragile ceasefire was established last month, progress on negotiations between Iran and the U.S. has remained minimal.

On Wednesday, Trump warned of potential military action if Iran fails to provide "100% good answers" during the negotiations, though he expressed a willingness to await further developments in diplomatic talks for a few more days.

"We're all ready to go," Trump stated to reporters at Joint Base Andrews in Maryland, referring to U.S. military readiness. "We have to get the right answers. It would have to be a complete 100% good answers."

"If I can save war by waiting a couple of days, if I can save people being killed by waiting a couple of days, I think it's a great thing to do," the president added.

In the meantime, ship traffic through the Strait of Hormuz has been significantly affected due to Iran's ongoing blockade of this vital trade route, which is crucial for global oil supplies.

The International Energy Agency (IEA) issued a warning on Thursday that the oil market could enter a "red zone" this summer if the Strait of Hormuz does not reopen. IEA chief Fatih Birol highlighted that global oil stockpiles are likely to dwindle as demand increases during the summer travel season.