Oil prices rise as investors weigh lack of progress in Middle East negotiations

Oil prices rose on Thursday, as traders weighed prospects for global supplies in the wake of the ongoing Iran war as Washington confirmed it was not currently in talks with Tehran despite diplomatic efforts by other countries.

Brent crude futures were up $1.16, or 1.32%, at $89 a barrel at 1332 GMT. West Texas Intermediate crude futures gained 52 cents, or 0.63%, to $82.75.

Prices fell in the last three sessions as investors weighed whether a deal could see an increase in oil flows out of the Middle East Gulf. But a lack of progress throughout the week, combined with continually restricted flows, could have prompted an adjustment of market views on Thursday, UBS analyst Giovanni Staunovo said.

The White House said on Thursday that no negotiations are happening between the U.S. and Iran, but that all options remain on the table.

"No negotiations are happening right now, and this will continue until the president feels that maybe they come to the table in a meaningful way. We have not seen that yet," White House press secretary Karoline Leavitt said in an interview with Fox News.

Qatar's prime minister visited Tehran on Thursday in a bid to relaunch diplomatic talks to end the U.S.-Israeli conflict with Iran, on the eve of the conflict's six-month anniversary and as traffic through the vital Strait of Hormuz route for Gulf energy exports remains restricted.

Meanwhile the U.S. and Iran traded recriminations over Washington's promise to increase economic pressure on Iran.

The U.S. on Monday announced the "toughest sanctions in history" on Iran, taking economic measures that Treasury Secretary Scott Bessent suggested would lessen the need for new major military operations.