Oil prices fell sharply after US President Donald Trump said he has cancelled plans to strike Iran on Thursday.

Brent futures fell $3.37, or 3.6 per cent, to $89.73 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell $3.20, or 3.6 per cent, to $86.83 a barrel.

Trump had earlier on Thursday threatened to hit Iran “very hard” as tensions in the Middle East escalated sharply over recent days. Still, Iranian sources and Western officials had said indirect talks for a preliminary peace deal between the two sides had intensified.

Trump said he cancelled the strikes because discussions “have been brought to the highest level of Iranian leadership and approved”. He did not share more details in his social media post announcing the decision.

“Discussions and final points have been, in both concept and great detail, approved by all parties involved,” Trump said in his post.

US President Donald Trump has threatened a major escalation in the conflict with Iran, declaring that the United States would hit the country “very hard” and signalling plans to take control of critical Iranian energy infrastructure, including the strategically important Kharg Island.

In a post on Truth Social on Thursday, Trump claimed that Iran’s naval, air and air defence capabilities had been largely destroyed and warned of imminent military action. He also stated that the US would eventually take control of Kharg Island and other oil infrastructure assets, adding that Washington would “assume total control” of Iran’s oil and gas markets.

The comments represent one of Trump’s strongest statements since the latest phase of hostilities began and raise the prospect of direct US action against assets that underpin Iran’s energy exports. Kharg Island is widely regarded as Iran’s most important oil export terminal, handling the vast majority of the country’s crude shipments to international markets.

The remarks come amid heightened tensions across the Gulf region, with concerns growing over the future of energy flows through the Strait of Hormuz and the security of critical oil and gas infrastructure. Markets reacted swiftly to the latest developments, with oil prices reversing earlier losses following Trump’s statement as traders assessed the potential impact on global crude supplies.

Trump compared the proposed strategy to US actions in Venezuela, arguing that greater American control over energy resources had delivered positive outcomes. However, he did not provide details on how the United States would seek to take control of Iranian energy assets or whether any such move would involve military occupation, sanctions enforcement or other measures.

The comments came after the Persian Gulf Strait Authority (PGSA) announced on X that the Strait of Hormuz would be “completely closed” to transit traffic, citing tensions involving US forces.

The Persian Gulf Strait Authority (PGSA) has announced that the Strait of Hormuz will be “completely closed” to transit traffic, citing escalating tensions involving US military operations.

In a post published on X, the authority said: “Due to tensions caused by the aggressive US forces and the recent announcement issued by IR Armed Forces, the Hormuz Strait will be completely closed.” The authority also advised companies and vessel operators that had already secured transit permits to remain patient and await further instructions.

The announcement marks a significant escalation in the ongoing crisis surrounding one of the world’s most strategically important maritime chokepoints. The Strait of Hormuz serves as a critical route for global energy shipments, with a substantial share of the world’s crude oil and liquefied natural gas exports passing through the waterway.

The latest notice follows reports that Iran’s military command had moved to halt vessel traffic through the strait amid renewed hostilities with the United States. International media reports on Thursday indicated that Iranian authorities had declared the waterway closed to all vessels following fresh US strikes.

The PGSA, established earlier this year to oversee and regulate maritime transit through the strait, has become a key point of contact for shipping companies seeking passage approvals during the crisis.

Read: Three Indian sailors killed in US-Iran shipping standoff

Three Indian sailors have died in a US military operation to halt a tanker off Oman as part of Washington’s efforts to blockade Iran-linked shipping, Indian authorities confirmed on Thursday.

The deaths are the first reported since the blockade began on April 13, operations which have seen the US disable eight ships and turn back more than 100 others.

Separately, the Indian embassy in Oman on Thursday reported an incident involving another tanker off Oman, which the Forward Seamen’s Union of India said was the MT Jalveer.

Indian Shipping Minister Sarbananda Sonowal confirmed the three sailors had died.

“Sadly, three Indian seafarers initially reported missing are now confirmed dead after bodies have been located and identified,” Sonowal said.

The US military’s Central Command (Centcom) said a US aircraft had carried out a precision strike on the Palau-flagged oil products tanker Settebello in the Gulf of Oman.

It “fired precision munitions into the ship’s engine room after the crew repeatedly failed to comply with directions from American forces”, Centcom said.

India’s foreign ministry on Wednesday condemned the attack and said 21 Indian sailors had been rescued.

The Omani Navy responded to the Settebello’s distress call after it reported an engine fire following the US strike, British maritime risk management group Vanguard said.

India summoned the US deputy chief of mission to the country after lodging a “strong protest” over the incident, two Indian sources with direct knowledge of the matter told Reuters on Wednesday.

The US attacks on vessels carrying Indian seafarers come ahead of next week’s Group of Seven summit where Indian Prime Minister Narendra Modi is likely to hold bilateral talks with US President Donald Trump. Centcom said the Settebello “violated the ongoing blockade by attempting to transport oil from Iran”.

It said the US blockade had disabled eight non-compliant vessels, redirected 134 ships that complied, and allowed 42 vessels supporting humanitarian aid to pass.

US ‌forces disabled the unladen Marivex oil tanker, which also had Indian crew aboard, in the Gulf of Oman on Monday after it attempted to sail to an Iranian port.

India is the world’s third-largest supplier of seafarers, with more than 300,000 sailors working in global shipping fleets, according to government data. Ships being targeted by the US blockade include Iranian vessels as well as so-called shadow fleet tankers, which are typically older vessels without Western insurance used to transport sanctioned oil and sailing under the flags of various nations to obscure their true ownership, cargo and movements.

“I strongly condemn any act from any party that endangers the lives of seafarers and the safety of international shipping. This is simply unacceptable,” Arsenio Dominguez, secretary-general of the UN’s shipping agency the International Maritime Organization, said on Wednesday.

Qatar Airways has announced the resumption of daily flights between Doha and Philadelphia, effective August 1, 2026, expanding its North American network to 14 destinations.

The reinstated service will operate using the Airbus A350-900 aircraft, featuring the airline’s Qsuite business class product and Starlink connectivity.

Philadelphia becomes the latest US destination in Qatar Airways’ network as the carrier continues to strengthen its presence in North America and enhance connectivity through its Doha hub.

The airline said the route will provide travellers with access to destinations across Africa, Asia and the Middle East via Hamad International Airport in Doha.

In the United States, passengers will also benefit from onward connectivity through Qatar Airways’ oneworld alliance partner, American Airlines.

Qatar Airways noted that more than 140 aircraft in its fleet are now equipped with Starlink, making it the world’s largest Starlink-equipped widebody fleet.

The airline first entered the US market in 2007 with flights to New York and has since expanded its North American footprint to serve key business and leisure destinations across the region.

Daily flights between Doha and Philadelphia will operate as follows:

• Flight QR727 will depart Doha at 08:00 and arrive in Philadelphia at 15:05.
• Flight QR728 will depart Philadelphia at 21:30 and arrive in Doha at 17:00 the following day.

This summer, Qatar Airways’ North American network will comprise Atlanta, Boston, Chicago, Dallas, Houston, Los Angeles, Miami, Montreal, New York, Philadelphia, San Francisco, Seattle, Toronto and Washington D.C.

The airline said the resumed Philadelphia service reflects its continued commitment to the US market and its strategy of strengthening global connectivity through Doha.