Iran Holds Uranium as Oil Prices Rise on Supply Fears
By Aboki Forex —
Iran’s Supreme Leader Ayatollah Mojtaba Khamenei has reportedly ordered that near-weapons-grade uranium stay inside the country. The directive blocks any plan to ship the material abroad, according to Iranian sources cited by Reuters.
The move comes just as U.S. President Donald Trump said Washington was in the “final stages” of talks with Iran. The mixed signals have rattled oil markets. Investors now worry that a peace deal may not come soon, keeping supply routes blocked.
Oil prices bounced back on Friday after falling for three straight days. Brent crude futures for July rose 1.9% to $104.52 a barrel in early Asia trade. U.S. West Texas Intermediate futures for June gained 1.5% to $97.81 a barrel.
The International Energy Agency (IEA) has warned that oil markets could enter a “red zone” soon. Global stocks are shrinking while travel demand picks up for the summer. IEA Executive Director Fatih Birol said the best solution to the energy crisis is the full and unconditional reopening of the Strait of Hormuz. He added that developing countries in Asia and Africa will feel the “biggest pain of this crisis.”
The Iran war, which began in late February, has disrupted traffic through the Strait of Hormuz. Before the conflict, about one-fifth of the world’s oil and liquefied natural gas passed through that waterway. Energy executives now say full normalisation of Middle East oil supply may not happen until 2027. That warning came from a recent note by MUFG, citing the scale of damage from the conflict.
—CNBC’s Sam Meredith contributed to this report.