Oil turns positive on report Iran rejects US proposal for Strait of Hormuz

NEW YORK - Oil prices turned positive in volatile trade on Thursday after a report said Iran would not allow the U.S. to reopen the Strait of Hormuz with "an unrealistic plan."

Brent crude futures rose 71 cents, or 0.7%, to $101.98 per barrel at 1:36 p.m. EDT (1736 GMT), while U.S. West Texas Intermediate crude rose $1.62, or 1.7%, to $96.70.

Earlier in the session, both benchmarks were down over $5 a barrel.

A senior Iranian official said Iran would not allow the U.S. to reopen the Strait of Hormuz with "an unrealistic plan" and then exit the war without paying any reparations "for all the damage inflicted on Iran," the Wall Street Journal said, citing Iran's state broadcaster Press TV.

(Reporting by Siddharth Cavale in New York, Robert Harvey in London, Yuka Obayashi in Tokyo and Emily Chow in Singapore. Additional reporting Scott DiSavino; Editing by Susan Fenton, Mark Potter and David Gregorio)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published May 7, 2026 at 10:45 AM.