Oil Climbs Above $100 As Iran Rejects US Talks, Ceasefire Hopes Fade

Last Updated:March 26, 2026, 08:35 IST

The conflicting narratives from Washington and Tehran have added to market uncertainty, with traders weighing the risk of prolonged tensions

A Crude Oil Drilling Platform. (File Photo)

Oil prices rose on Thursday after Iran signalled that it is not engaged in direct negotiations with the United States, even as a US-backed proposal to end the ongoing conflict remains under consideration in Tehran.

Brent crude, the global benchmark, climbed 1.21% to $103.46 per barrel, while US West Texas Intermediate (WTI) gained 1.35% to $91.54 per barrel, reflecting renewed geopolitical uncertainty in a key oil-producing region.

Iran denies direct talks

Iranian Foreign Minister Abbas Araghchi said recent exchanges between Tehran and Washington, conducted through intermediaries, should not be viewed as negotiations.

Speaking to state media, Araghchi stressed that such communications do not constitute “negotiations with the US,” reaffirming Iran’s stance that no direct talks are underway.

State media reports also indicated that Tehran is likely to reject the US-backed ceasefire proposal and has instead outlined its own conditions for ending the conflict.

US maintains talks are ongoing

Iran’s position contrasts with statements from US President Donald Trump, who said earlier this week that discussions between the two countries are in progress.

Speaking from the Oval Office, Trump said the US and Iran are “in negotiations right now” and suggested that Tehran may be open to reaching an agreement. He also noted that Washington had stepped back from earlier threats to target Iran’s energy infrastructure, citing the possibility of a diplomatic resolution.

Mixed signals fuel uncertainty

The conflicting narratives from Washington and Tehran have added to market uncertainty, with traders weighing the risk of prolonged tensions against hopes of de-escalation.

Given the Middle East’s critical role in global oil supply, even the perception of disruption continues to drive price volatility, keeping markets on edge.

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