Oil hits session high on report Iran wants to keep its uranium

Published Thu, May 21, 2026 · 08:11 PM

OIL gained after a report that Iran’s Supreme Leader issued a directive to keep near-weapons-grade uranium domestically, a key sticking point in peace negotiatitons with the US. 

Brent traded near US$107 a barrel, after sliding 5.6 per cent in the previous session on comments from President Donald Trump that the US was in the “final stages” with Iran.

Reuters reported the Iranian directive was issued over fears that sending the uranium abroad would leave the country more vulnerable to attacks by the US and Israel. 

Teheran is in the process of responding to a US message that “has narrowed the gaps to some extent,” the semi-official Iranian Students’ News Agency said Thursday. 

Oil has been buffeted by conflicting headlines about talks that could potentially lead to the reopening of the vital Strait of Hormuz, with prices more than 40 per cent higher than when the war started at the end of February.

Still, traders have consistently priced in the possibility of an abrupt deescalation, including a deal under which Iran reopens the key shipping lane and unlocks millions of barrels stuck in the Persian Gulf.

“In reality neither side is willing to make any significant concession,” Amrita Sen, co-founder and director of research at consultant Energy Aspects said in a Bloomberg TV interview.

She said the directive illustrates that and “at least from the interpretation that the market is probably going to come up with, is that no, a deal isn’t near anytime soon.”

Even if the Iran conflict ended immediately, Middle East oil flows would not fully recover until well into 2027, Abu Dhabi National Oil chief executive officer Sultan Al Jaber said on Wednesday. The Strait of Hormuz closure was the market’s most severe supply disruption on record, he said.

Already, global stockpiles of crude oil and products are being drawn down at a record pace this month as the war drags on, curtailing supplies, according to Goldman Sachs Group.

On Wednesday, US crude inventories including strategic reserves posted the biggest decline on record, as record American exports help keep markets supplied overseas.

There are signs that some of the market’s worst fears around supply are being averted for now. Low-cost European airline EasyJet said on Thursday that it has seen no issues with jet fuel supply and has no concerns about its ability to fly its planned schedule over the summer. 

Trump said on Wednesday “we’ll see what happens” with Iran, adding that a deal will be made or “we’re going to do some things that are a little bit nasty, but hopefully that won’t happen.” He has repeatedly threatened to restart strikes on Iran if the country doesn’t agree to his peace terms. BLOOMBERG