Oil prices surged on Thursday following reports that Mohammad Bagher Ghalibaf, Iran’s Parliament Speaker and lead negotiator with the United States, has resigned from the negotiating team due to alleged interference by the Islamic Revolutionary Guard Corps (IRGC), according to Israel’s N12 News [1][2]. Brent oil prices jumped more than 3% to $104.79 per barrel by 2:05 p.m. ET, while West Texas Intermediate (WTI) advanced more than 3% to $95.95 per barrel [2]. FXStreet reported WTI trading around $94.56 per barrel after hitting an intraday high near $97, up 2.8% on the day [1]. The resignation is seen as deepening divisions within Iran’s leadership and reducing the likelihood of near-term progress in US-Iran negotiations [1][2].
The geopolitical backdrop has sharply deteriorated, with the Strait of Hormuz under a dual blockade by US forces and Iran. US President Donald Trump stated on Truth Social that the US has "total control over the Strait of Hormuz," and ordered the Navy to "shoot and kill any boat" placing mines in the waterway, asserting the route is "sealed up tight" until Iran agrees to a deal [1][2]. Iran, meanwhile, insists that the US must lift the naval blockade, which Tehran views as a violation of the ceasefire and a key obstacle to negotiations [1][2]. Oil tanker traffic through the strait remains very low as both sides enforce competing blockades [2].
Both sources report that Iran’s IRGC seized two vessels in the strait on Wednesday, according to shipping companies and the semi-official Tasnim news agency [1][2]. The US has also intercepted several Iranian oil tankers during the ceasefire [2]. The Washington Post, cited by FXStreet, reported that it could take up to six months to fully clear mines from the strait, highlighting the risk of prolonged disruption to global oil supply [1].
Looking ahead, traders are expected to closely monitor developments around the US-Iran conflict and any signals of de-escalation. In the near term, WTI and Brent prices are likely to remain highly sensitive to headlines from the Strait of Hormuz, with supply disruption risks expected to keep prices supported [1]. CNBC notes that possible intervention by the Revolutionary Guard raises market concerns that Tehran will take a harder line during negotiations with the US [2].
CONCLUSION
The resignation of Iran's lead negotiator and escalating tensions in the Strait of Hormuz have driven oil prices sharply higher, reflecting heightened geopolitical risk and supply disruption fears. Both WTI and Brent are expected to remain volatile as traders watch for further developments in US-Iran negotiations and the ongoing blockade. The market is pricing in continued uncertainty, with supply risks likely to keep oil prices elevated in the near term.