Iran warns strikes to military, economic interests if US starts 'mischief'

Brent crude prices surged by over $2 per barrel on Thursday, following a Wall Street Journal report indicating that U.S. President Donald Trump is not inclined to revert to the terms of the Iran memorandum of understanding from June. The report, based on information from individuals familiar with the situation, stated that the Trump administration has consistently communicated its disinterest in reviving the June agreement, posing a challenge to recent diplomatic attempts to resume talks.

Earlier on Thursday, the United States confirmed it was not engaged in discussions with Iran, despite efforts from other countries to rekindle the dialogue between the two nations. Brent crude futures increased by $2.18, representing a 2.5% rise, to $90.02 a barrel at 2:20 p.m. EDT. West Texas Intermediate crude futures also gained $1.61, or 1.9%, to $83.84.

Market reactions were driven by a three-day period of losses as investors reevaluated expectations of a possible diplomatic breakthrough which could increase oil exports from the Middle East. UBS analyst Giovanni Staunovo noted that the absence of progress in the negotiations, coupled with ongoing restrictions on oil flows, might have prompted a revision of market forecasts.

The White House affirmed that no negotiations are taking place between the United States and Iran, but all options are still on the table. On the same day, Qatari Prime Minister visited Tehran to attempt to restart diplomatic talks aimed at ending the ongoing U.S.-Israeli war with Iran, marking the six-month anniversary of the conflict.

Iran's top security official, Mohsen Rezaei, warned during the meeting with Qatari officials that Tehran would target U.S. military and economic interests should the United States engage in mischief against Iran. Washington and Tehran also exchanged accusations regarding Washington's announcement of the most stringent sanctions ever imposed on Iran, which Treasury Secretary Scott Bessent described as a measure that could reduce the necessity for further significant military operations.

Ebrahim Azizi, head of the Iranian parliament's national security committee, referred to the sanctions as an "inhumane and hostile act" that had, however, lost its intended impact.