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Oil prices tumbled on Thursday morning amid hope that the US and Iran are near a peace deal to end a war that has stoked the biggest energy supply shock in history.

Brent Crude futures sank 6.2 per cent to $US103.09 a barrel, and US WTI oil fell 5.8 per cent to $US96.77 a barrel. Australian share futures pointed to a 0.8 per cent gain at the opening bell on Thursday.

The Australian dollar also rose to a four-year high after the Reserve Bank lifted benchmark interest rates 25 basis points to 4.35 per cent on Tuesday. On Thursday morning, the dollar bought $US72.4 cents, after hitting a high of $US72.8 cents on Wednesday evening.

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The US Central Command (CENTCOM) has revealed new details about an overnight operation targeting an Iranian-flagged oil tanker in the Gulf of Oman, saying US forces intervened after the vessel attempted to continue toward an Iranian port.

A US Navy warplane fired “several rounds” of ammunition into the ship’s rudder after what CENTCOM described as repeated warnings were ignored.

“After Hasna’s crew failed to comply with repeated warnings, US forces disabled the tanker’s rudder by firing several rounds from the 20mm cannon gun of a US Navy F/A-18 Super Hornet launched from USS Abraham Lincoln (CVN 72),” the command said, adding, “Hasna is no longer transiting to Iran.”

Donald Trump has issued what appears to be a stark final warning to Iran, taking to Truth Social to escalate pressure amid ongoing negotiations.

“If they don’t agree, the bombing starts, and it will be, sadly, at a much higher level and intensity than it was before.”

The threat comes as Washington pushes Tehran to accept a deal to end the conflict, with Trump making clear that failure to reach an agreement could trigger a significant escalation in military action.

Donald Trump has insisted Iran is eager to strike a deal to end the war, suggesting US pressure could ultimately force a settlement.

Speaking at a Mother’s Day lunch at the White House, he said: “We’re dealing with people that want to make a deal very much, and we’ll see whether or not they can make a deal that’s satisfactory to us.”

As tensions continue in the Strait of Hormuz, Mr Trump described the blockade as a “wall of steel”, with both sides using disrupted oil and gas flows as leverage.

“If they don’t agree, they’ll end up agreeing shortly thereafter,” he said.