Saudi outlet Al Hadath reported that Iran has agreed to halt uranium enrichment in exchange for eased U.S. sanctions, a claim that knocked WTI crude below Friday's close and reversed a rally built on stalled diplomacy. U.S. crude had earlier jumped more than 4% to a session high of $96.44 a barrel after President Donald Trump rejected Iran's seven-day plan to reopen the Strait of Hormuz.

The report landed minutes after U.S. officials said Trump is willing to give Iran sanctions relief and release frozen funds for concrete progress on its nuclear program, with talks through mediators described as positive and constructive. The two sides remain divided over the timing of commitments, and a U.S. source engaged in the negotiations told Al Arabiya that the gaps are wide, the obstacles are major and the chances of an agreement are extremely slim.

Bloomberg reports that Iranian officials privately see little prospect of a deal to end hostilities and reopen Hormuz before the Nov. 3 midterms, after limited progress in the New York talks, and believe there is a high chance the conflict escalates after the vote. Iran said Friday it would no longer negotiate over its nuclear program, the main U.S. demand.