Oil Hits $117.64 as Qatari Mediators Seek U.S.-Iran Deal in Tehran

Qatari mediators concluded more than 12 hours of negotiations with Iranian officials in Tehran on Friday. The goal of the talks was to restart direct discussions between Washington and Tehran. A source familiar with the discussions told CNBC the meetings aimed to prevent a resumption of American-led strikes on Iran after the U.S. midterm elections.

Axios first reported that these talks are scheduled to continue in Doha on Saturday. Despite the active mediation, Iranian Foreign Minister Abbas Araghchi stated there are no current plans to meet U.S. officials directly. He added that an Iranian delegation had traveled to Qatar to speak with mediators. Araghchi dismissed reports of a direct U.S. meeting as media speculation.

The diplomatic effort comes after a preliminary agreement signed on June 17 to halt fighting collapsed weeks later. The conflict began on Feb. 28 with U.S. and Israeli strikes on Iranian targets. The last confirmed U.S. strikes on Iran occurred on Sept. 1. President Donald Trump has previously indicated that attacks could resume after the Nov. 3 midterm elections.

Tensions escalated on the ground in the Strait of Hormuz. Iranian Broadcasting Agency quoted a Hormozgan province official as saying U.S. forces attacked two fishing boats off Masan near Qeshm Island on Saturday. That report has not been independently confirmed. U.S. Central Command did not immediately respond to a request for comment.

The United Kingdom Maritime Trade Operations Centre reported Friday that a crude oil tanker was hit by an unknown projectile while exiting the strait. Separately, Iran said four tankers struck mines in the waterway. The Islamic Revolutionary Guard Corps stated three tankers caught fire after hitting mines near the Omani coast. Iran's army reported a fourth tanker burned east of the strait.

Oil markets reacted sharply to the increased risk. Brent crude futures for December settled at $117.64 per barrel on Friday, a gain of $2.76 or 2.4%. The price touched a high of $118 during the session. The more active January contract rose $2.63 to settle at $113.43.

A statement posted on the Telegram account of Iranian Supreme Leader Mojtaba Khamenei on Saturday outlined the country's military posture. It said any threat must be met with an immediate and geographically unrestricted response. Yemen's Houthis also claimed missile strikes on Saudi Arabia on Friday, adding to the pressure on the region.