Oil prices surge 2% as Iran insists uranium stays domestic

• Ayatollah Mojtaba Khamenei issued a directive prohibiting Iran's enriched uranium from being shipped abroad, according to two senior Iranian sources
• WTI crude reached $100.57 per barrel (up 2.4%) and Brent crude hit $107.05 per barrel (up nearly 2%) by 8:34 a.m. ET
• The directive is viewed as complicating peace talks with the U.S., coming after President Trump called off imminent airstrikes to allow more time for diplomacy

Market Summary: Oil Prices Surge on Iran Nuclear Stance

Key Market Movement:

Oil prices jumped over 2% Thursday following reports that Iran's supreme leader will not permit enriched uranium to be exported from the country. West Texas Intermediate (WTI) crude rose 2.4% to $100.57 per barrel, while Brent crude advanced nearly 2% to $107.05 per barrel by 8:34 a.m. ET.

Primary Catalyst:

According to Reuters, two senior Iranian sources confirmed that Ayatollah Mojtaba Khamenei issued a directive mandating that enriched uranium remain within the Islamic Republic. This position significantly complicates ongoing diplomatic negotiations between Tehran and Washington.

Geopolitical Context:

The uranium stance follows President Donald Trump's decision earlier this week to halt imminent U.S. airstrikes on Iran, reportedly at the request of U.S. Gulf Arab allies to allow more time for diplomatic resolution. The decision to prioritize negotiations had temporarily eased tensions.

Market Implications:

The price surge reflects investor concerns about potential supply disruptions in a critical oil-producing region. Iran's hardline position on uranium enrichment reduces the likelihood of a near-term diplomatic breakthrough, maintaining geopolitical risk premiums in energy markets. The situation poses continued uncertainty for global oil supply stability, particularly given Iran's strategic location near the Strait of Hormuz, a vital chokepoint for international oil shipments.

Additional Context:

One analyst noted that oil flows could require up to four months to return to 80% of pre-war levels, underscoring the extended timeline for market normalization in the event of regional conflict escalation.