Brent crude tops $112 after Trump says no negotiations with Iran, something will happen 'fairly soon'

Oil prices climbed Thursday on worries over a possible escalation in the Middle East conflict as the U.S. reportedly plans to resume strikes against Iran.

Brent crude futures rose 3.3% to $112.37 a barrel as of 9:15 a.m. ET after nearly reaching $113 earlier. U.S. West Texas Intermediate crude gained 2.8% to $99.88 after breaking $100 earlier.

The U.S. and Israeli militaries have drawn up specific plans for renewed strikes on Iran after next month's midterm elections, unnamed U.S. officials told The New York Times. Planning for a "short but intensive" operation is progressing, the officials said.

President Donald Trump subsequently said the U.S. is not negotiating with Iran when asked by a reporter late Wednesday. Trump said "something one way or the other" will "happen fairly soon" on Iran.

"Most people seem to think it's after the election," Trump said, referring to the U.S. midterms that are less than two weeks away. "We're going to see what happens."

The U.S. has also ordered non-emergency government employees and their families to leave Saudi Arabia.

State Department spokesman Tommy Pigott in a post on X said the order applies only to Saudi Arabia, dismissing reports that the U.S. had directed some staff in the wider Gulf region to leave. He pointed to escalating attacks by Iran-aligned Houthis on civilian targets in Saudi Arabia.

The economic fallout from elevated oil prices, however, may be less severe than in previous decades, as consumers have become less vulnerable to energy shocks, according to David Wagner, head of equity and portfolio manager at Aptus Capital Advisors.

"$100 oil today is very different than $100 oil, you know, 20, 30 years ago," Wagner said, noting that crude prices remain well below their inflation-adjusted historical highs.

He pointed to U.S. government data showing that gasoline accounted for roughly 5% of the average American's disposable income a decade ago, compared with about half that today, suggesting households may be better positioned to withstand elevated energy costs.

"I think we can hold that umbrella over our head ... from the rainstorm of oil," he said.