Oil Prices Surge 3% After Vance Says Iran Ignored US Red Lines

Oil prices jumped sharply on Wednesday after U.S. Vice President J.D. Vance said Iran had failed to address key American red lines in nuclear talks this week and warned that President Donald Trump retains the option of military force.

U.S. West Texas Intermediate crude rose $1.99, or 3.19%, to $64.32 a barrel. Global benchmark Brent crude gained $2.04, or 3.03%, to $69.46 a barrel.

Latest Oil Prices:

WTI Crude • 64.88 +2.55 +4.09%

Brent Crude • 69.96 +2.54 +3.77%

Murban Crude • 70.42 +2.49 +3.67%

Louisiana Light • 64.58 -0.82 -1.25%

Bonny Light • 78.62 -2.30 -2.84%

Opec Basket • 66.62 -1.44 -2.12%

Mars US • 69.79 -0.88 -1.25%

Gasoline • 1.965 +0.051 +2.65%

Natural Gas • 2.935 -0.096 -3.17%

The rally followed comments by Vance in which he said Tehran had not responded to Washington’s core demands during nuclear negotiations held this week in Geneva. U.S. envoys Steve Witkoff and Jared Kushner met with Iranian officials, with Iran’s Foreign Minister Abbas Araghchi describing the discussions as “constructive,” according to Iranian media. Araghchi said the two sides reached general agreement on guiding principles.

Oil prices had closed lower on Tuesday as traders interpreted the Iranian foreign minister’s remarks as a potential sign of progress toward a diplomatic breakthrough between Washington and Tehran.

However, Vance struck a more cautious tone in an interview with Fox News late Tuesday, saying that while both sides agreed to continue talks, Iran had not acknowledged or addressed the red lines set by the U.S. president.

“Things went well in some respects,” Vance said, noting agreement on future meetings. “But it’s also clear that the president has drawn red lines that the Iranians have not shown a willingness to recognize or work toward resolving.”

He added that Trump maintains the right to use military force if diplomacy fails to curb Iran’s nuclear program. “We have a very strong military, and the president has shown he is willing to use it,” Vance said.

Separately, sources cited by Axios indicated that any potential U.S. military campaign against Iran would likely be extensive, potentially lasting weeks and resembling a broad conflict rather than a limited strike.

Tensions were further heightened by military exercises conducted this week by Iran’s Revolutionary Guard in the Strait of Hormuz, a critical artery for global energy supplies. Roughly one-third of seaborne crude oil exports pass through the narrow waterway, according to energy consultancy Kpler.

The combination of diplomatic uncertainty and the prospect of escalating military confrontation injected fresh risk premiums into oil markets, reversing the previous session’s losses and pushing prices higher.