Oil prices rose Thursday after Iran signaled it had no intention of holding direct talks with the United States, even as a U.S. proposal to end the war is under review by senior officials in Tehran, according to remarks from the Islamic Republic’s foreign minister.

International benchmark Brent crude futures added 1.95% to $104.21 per barrel, while U.S. West Texas Intermediate futures climbed 2.05% to $92.17 per barrel.

Iranian Foreign Minister Abbas Araghchi told state media on Wednesday that exchanges between the two countries through mediators do not mean “negotiations with the U.S.,” Reuters reported.

Iranian state media reported that Tehran would reject a U.S. ceasefire offer and had instead laid out its own conditions for ending the conflict.’

The latest comments came as Washington and Tehran continued to offer differing accounts of the status of talks.

Trump said Tuesday the U.S. and Iran are “in negotiations right now” and suggested Tehran is eager to make a deal, even as the Islamic Republic has denied any direct talks. Speaking in the Oval Office, Trump said he had backed off from earlier threats to strike Iranian energy infrastructure “based on the fact we’re negotiating.”

Analysts at investment bank TD Securities said the latest oil shock is unlikely to trigger an aggressive policy response from the Federal Reserve.

While markets have begun pricing in the risk of rate hikes amid elevated inflation expectations, TD said the Fed is more likely to remain in a “wait and see” mode, with its leadership still leaning toward rate cuts later in 2026.

“The Fed will look through the energy shock” so long as longer-term inflation expectations remain anchored and second-round effects stay contained, the bank added.