Oil prices rise on U.S.-Iran talks despite Houthi missile attacks
Quick Look
- Crude oil prices rose Thursday after U.S. and Iranian negotiators discussed a phased deal in New York to end the Persian Gulf standoff, though gains eased from session highs.
- Brent crude reached $105.69 and WTI $94.30, following earlier Houthi missile strikes on Saudi oil facilities that pushed Brent to a session high of $108.23.
- Saudi forces intercepted six missiles targeting Yanbu and Taif, while Trump and Pezeshkian delivered defiant U.N. speeches amid ongoing talks.
AI-generated summary
Why It Matters
U.S. and Iranian negotiators are discussing a phased deal in New York to end the standoff in the Persian Gulf, with Iran offering to allow navigation in the Strait of Hormuz in exchange for ending the U.S. naval blockade. Earlier, Houthi militants in Yemen fired missiles at Saudi Arabia, targeting oil export facilities.
Crude oil prices rose Thursday but were off session highs on a report that U.S. and Iranian negotiators in New York are discussing a phased deal to end the standoff in the Persian Gulf.
Brent crude , the international benchmark, rose 2.5% to $105.69 a barrel. U.S. West Texas Intermediate futures climbed 2.3%, to $94.30.
A senior Iranian official told Reuters the most realistic path forward is for Tehran to allow navigation in the Strait of Hormuz in exchange for the U.S. ending its naval blockade.
Earlier in the day, Brent crude was up about 5% to a session high of $108.23 after Iran-allied Houthi militants in Yemen fired a barrage of missiles at Saudi Arabia. Brent has gained more than 17% in September while U.S. crude is up more than 10%.
Saudi armed forces intercepted six ballistic missiles fired by the Houthis at the cities of Yanbu and Taif, a military spokesperson said. Yanbu is a key oil export terminal on Saudi Arabia's Red Sea coast.
U.S. President Donald Trump and Iranian President Masoud Pezeshkian gave defiant speeches to the U.N. General Assembly this week, even as their negotiators held talks on the sidelines of the gathering.
Trump said Tuesday that he faced a "big decision" about whether to negotiate a deal with Iran or "annihilate" the Islamic Republic. Pezeshkian told U.N. members Wednesday that Iran will not surrender to the U.S. and will continue to fight back "until our last breath."
What to Watch
AI outlook — possibilities, not facts
U.S. and Iran will reach a preliminary agreement on phased steps to reduce Gulf tensions
Likely · Within weeks
Houthi missile attacks on Saudi targets will continue in the near term
Likely · Within weeks
Open Questions
- What specific terms are being discussed in the phased deal?
- How long would any agreement last?
- Will the Houthi attacks continue despite U.S.-Iran talks?
