US and Iranian negotiators reportedly explored a phased agreement that could reopen the Strait of Hormuz, while President Donald Trump and Chinese President Xi Jinping discussed trade, technology and artificial intelligence.
Oil prices rose on renewed supply concerns but pared gains on reports of the Hormuz talks, while gold declined as higher oil prices and expectations for further US interest-rate increases weighed on bullion.
US, Iran explore phased deal to reopen Hormuz
US and Iranian negotiators are exploring a phased agreement that would see Tehran reopen the Strait of Hormuz and Washington lift its economic blockade of Iranian ports, Bloomberg reported, citing a person familiar with the matter.
The talks took place on the sidelines of the United Nations General Assembly in New York, with Qatari officials mediating between the two sides.
A sequenced agreement would resemble a memorandum of understanding reached by the US and Iran in mid-June that resulted in a fragile ceasefire before breaking down weeks later.
The Strait of Hormuz has become a central point in negotiations as Iran seeks relief from the US blockade and Washington seeks the restoration of free passage through a key global oil route.
Iranian Foreign Minister Abbas Araghchi outlined Tehran’s conditions for reopening the strait, including the immediate lifting of the US naval blockade, the unfreezing of Iranian assets and an end to the war on all fronts, according to Iranian state media.
Despite the diplomatic efforts, missile attacks continued in the region. Saudi Arabia said it intercepted six ballistic missiles fired by Yemen’s Iran-backed Houthis.
Trump and Xi discuss trade and AI
Trump welcomed Xi to the White House on Thursday for a state visit after Washington said the two countries had agreed to extend their trade truce by two months to January 10.
The extension keeps lower tariffs and Chinese rare-earth supplies in place while negotiations continue on a broader agreement.
Artificial intelligence featured prominently in the leaders’ opening remarks.
Xi said the US and China, as leading AI nations, share responsibility for ensuring the technology remains under human control.
Trump said decisions involving security, technology and AI could promote peace and prosperity for decades.
The two leaders also discussed the broader trade relationship, with the truce providing additional time for negotiations on economic issues.
Oil prices rise as Hormuz talks offset supply fears
Oil prices rose about 4% on Thursday after a Houthi missile attack on Saudi Arabia revived concerns about supply disruptions.
Brent crude futures rose 4.37%, to $107.59 a barrel, while US West Texas Intermediate crude gained 3.55%, to $95.41.
Both benchmarks had been up about 5% earlier in the session.
WTI was on track to rise for the first time in seven sessions after falling about 13% over the previous six.
Reports of the US-Iran discussions on reopening Hormuz helped limit the gains. Saudi Arabia was also increasing crude pumping volumes through its East-West Pipeline to Yanbu, although tanker loadings had yet to resume, Reuters reported.
Gold falls as oil and rate-hike bets rise
Gold prices declined on Thursday as higher oil prices and expectations for tighter US monetary policy weighed on bullion.
Spot gold fell 0.34% to $4,272.46 an ounce, while December US gold futures settled 0.28% lower at $4,306.50.
Oil prices have added to inflation concerns, while the Federal Reserve raised interest rates for the first time in three years last week and signalled further increases this year.
Traders were pricing a 69% chance of an October rate hike, according to CME’s FedWatch Tool.
The dollar also reached a two-month high, making gold more expensive for overseas buyers, while 10-year Treasury yields remained near a two-decade high.
Spot silver fell 1.3% to $63.60 an ounce, platinum declined 0.1% to $1,748.46, while palladium gained 0.7% to $1,268.24.
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