Oil resumes rally as Iran reportedly seeks to keep enriched uranium at home
Brent crude pushed back above $100 as traders priced in renewed Iran-US tension. The International Energy Agency warned that summer travel demand could send the market into a 'red zone' soon. Reports that Tehran refuses to transfer its enriched uranium abroad complicate ongoing peace talks.
ICE Brent crude futures climbed more than 2% in early Friday trading to retake the $100 mark, while West Texas Intermediate hovered near $96. Investors are pricing in renewed risk that the US-Iran negotiation track could stall, even as tanker traffic through the Strait of Hormuz remains subdued.
Diplomatic sources told Reuters that Tehran has rejected a proposal to transfer its existing stockpile of enriched uranium to a third country. The move raises the prospect that the verification framework Washington was close to signing could break down. The White House and the State Department have not yet issued a formal response.
The International Energy Agency said global crude stockpiles are drawing down quickly as summer travel demand picks up, warning that a fresh supply shock could push the market into a 'red zone'. Analysts at JPMorgan and Goldman Sachs expect the $105-$110 band to be tested in the short term.
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