Oil prices jump more than 2% after Iran supreme leader says uranium must remain in country

Oil prices jumped Thursday on a report that Iran’s supreme leader will not allow the country’s enriched uranium to be shipped abroad, a position that will likely complicate peace talks with the U.S.

U.S. crude oil rose 2.4% to $100.57 per barrel by 8:34 a.m. ET. International benchmark Brent crude prices advanced nearly 2% to $107.05 per barrel.

Ayatollah Mojtaba Khamenei has ordered Iran’s enriched uranium to remain in the Islamic Republic, two senior Iranian sources told Reuters. President Donald Trump has said dismantling Iran’s nuclear program is a central objective of the U.S. war.

Trump said earlier this week that he called off imminent airstrikes on Iran to give diplomacy more time at the request of U.S. Gulf Arab allies. Iran and the U.S. have made little progress toward a deal since they agreed to fragile ceasefire last month.

Trump threatened Wednesday to resume military action if Iran does not provide “100% good answers” in the negotiations, but said he was willing to wait a couple more days to allow for talks.

“We’re all ready to go,” Trump told reporters at Joint Base Andrews in Maryland, reffering to U.S. military action. “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 said.

Meanwhile, ship traffic through the Strait of Hormuz remains severely disrupted due to Iran’s blockade of the sea lane, which is a crucial trade route for global oil supplies.

The International Energy Agency warned Thursday that the oil market will reach a “red zone” this summer if Hormuz does not reopen. Global oil stockpiles will deplete as demand picks up during summer travel, IEA chief Fatih Birol said.