Oil prices dip amid reports of tentative US-Iran deal

NEW YORK — Crude oil prices jumped sharply on Thursday, with West Texas Intermediate crude rising more than 2 percent to $90.87 per barrel and Brent crude climbing to $96.67, as renewed military exchanges between the United States and Iran near the Strait of Hormuz reignited fears of potential supply disruptions in the world's most critical energy chokepoint.

Chances that a U.S.-Iran nuclear deal will happen this year remained subdued on prediction markets after an Axios report revealed the two countries agreed to a ceasefire that still requires further negotiations to discuss nuclear demands.

Analysts and traders are struggling to respond to rapidly changing oil prices as conflicting developments regarding the war in Iran contribute to large swings practically on a daily basis.

The latest confrontation renewed doubts about the prospects of a peace deal, despite continued assurances by President Trump and administration officials that an agreement is close.