By Adam Clark and Anita Hamilton

Oil prices settled higher Thursday after President Donald Trump revealed what he called Iran's gift to the U.S. -- allowing the passage of ten oil tankers through the Strait of Hormuz.

The move was meant to show that Iran is "real and solid," Trump added during a cabinet meeting on Thursday.

Brent crude, the international standard, settled up 4.7% at $101.89 a barrel. West Texas Intermediate, the U.S. standard, settled up 4.6% at $94.48 a barrel.

Another pressure on global oil prices could come from Ukraine, which is using long-range drones to damage Russia's oil infrastructure, Reuters reported. The move follows the Trump administration's 30-day waiver on Russian oil sanctions earlier this month.

Earlier in the day, Trump wrote on Truth Social that Iranian negotiators are " begging" to make a deal, despite Iran's public messages to the contrary.

On Wednesday, Iran's information council said, "Trump's statements are false and should not be taken seriously," The Wall Street Journal reported. Iran has also threatened to control or close the Bab al-Mandeb Strait, another narrow passageway that controls sea traffic toward the Suez Canal.

What's more, allowing some ships to pass through the Strait of Hormuz may be less of a gift and more of a business deal. "Payments of as much as $2 million per voyage are being sought on an adhoc basis, effectively creating an informal toll on the waterway," according to a Bloomberg report citing anonymous sources.

Iran said Tuesday that it would allow " non-hostile vessels" to pass through the Strait, through which 20% of the world's daily oil normally flows. Trump said he thought the tankers that made it through were flying Pakistani flags.

Pakistan's deputy prime minister Ishaq Dar posted on X Thursday that "US-Iran indirect talks are taking place through messages being relayed by Pakistan." He added that "brotherly countries" Turkey and Egypt are involved, as well.

Separately, Israel said it had killed the commander of Iran's Revolutionary Guard navy, Alireza Tangsiri, in overnight strikes. Israeli Defense Minister Israel Katz said Tangsiri was "directly responsible" for mining and blocking the Strait of Hormuz. Iran hasn't confirmed his death.

In the face of rising fuel costs, the U.S. Environmental Protection Agency will issue an emergency waiver on nationwide sales of E15 gasoline -- a blend of 15% ethanol and 85% gasoline -- during the summer driving season starting May 1. This will mark the fifth summer in a row the agency has used its emergency authority under the Clean Air Act to waive limits on the higher blend of ethanol.

"This emergency action will provide American families with relief by increasing fuel supply and consumer choice," EPA Administrator Lee Zeldin said in a statement. "President Trump has prioritized ensuring American families have an affordable domestic energy supply."

The effects of oil disruption are being most acutely felt in Asia, where multiple governments have had to take action to address fuel shortages. The Philippines has declared a state of national energy emergency, South Korea has launched an energy-saving campaign, and Japan has bolstered its fund for subsidies for gasoline and other fuels.

"Fiscal buffers will be of only limited benefit if the outright supply shortages beginning to emerge in some Asian economies worsen and spread, " wrote Gavekal Research analyst Udith Sakand in a research note.

Write to Adam Clark at adam.clark@barrons.com and Anita Hamilton at anita.hamilton@barrons.com

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March 26, 2026 15:58 ET (19:58 GMT)

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