HOUSTON, Oct 8 (Reuters) - Oil prices jumped more than 5% on Thursday, then pared gains after President Donald Trump said the US will not launch an attack on Iran before midterm congressional elections in November. 

Brent crude futures were up $3.48, or 3.5%, at $103.73 a barrel by 12:41 p.m. ET (1641 GMT). US West Texas Intermediate (WTI) crude gained $2.69, or 3.1%, to $91. At their session highs, both contracts were up more than $5 a barrel, with Brent at its highest since September 29 on worries about potential imminent US strikes on Iran and a supply loss in the US Gulf of Mexico from Hurricane Isaias.

Then, Trump said Washington was having productive discussions with Iran. The Tasnim news agency reported that Foreign Minister Abbas Araqchi said Tehran is reviewing the US response to its proposal under which the Strait of Hormuz could be reopened within seven days, and could reply within days.

The U.S. dollar strengthened on Wednesday to a nearly 18-month high, helped by Federal Reserve minutes that hinted at more interest rate hikes and a slide in the euro and sterling. The latter currencies came under pressure amid a resurgence in a global bond rout. 

The U.S. dollar index, which tracks the greenback against a basket of six major peers, rose 0.4% to 102.24. The gauge was hovering at its highest level since April 9, 2025.

Bitcoin hovered above $86,000 on Monday after briefly climbing near $87,000, as investors weighed weaker-than-expected U.S. jobs data against still-elevated Treasury yields and persistent inflation concerns.

Bitcoin was last up around 1.1% at $86,246.4 by 10:05 ET (14:05 GMT), after touching $86,995.4 earlier in the session.

The cryptocurrency has struggled to sustain moves above $87,000 after also briefly breaking that level following Friday’s U.S. employment report.

Shipping bottlenecks, deep cuts in refinery output and inventory draws that could take years to replace will keep global oil prices high beyond this year, industry executives said at a conference in London on Monday. 

Following the start of the US-Israeli war on Iran at the end of February, Iran effectively closed the Strait of Hormuz, choking exports through one of the world’s most crucial shipping bottlenecks.

The impact has been compounded by attacks on oil and gas infrastructure, hampering production and adding to the disruption of exports of crude oil and refined fuels. 

"I think it is going to be bedlam for the bulk of the end of the year and maybe 2027," Petronas CEO Tengku Muhammad Taufik said.