Noida, Sep 24 (APAC Media): Oil prices rose more than 2% on Thursday as prospects for a quick diplomatic breakthrough between the United States and Iran faded, while uncertainty over a possible U.S. ban on diesel exports added to concerns about global fuel supplies.
Brent crude futures climbed 2.34% to $105.50 a barrel, while U.S. West Texas Intermediate (WTI) rose 1.73% to $93.73 as of 3:52 PM IST. The latest gains came after a strong rally in the previous session, when Brent advanced more than 3% and WTI gained nearly 2%, highlighting continued volatility in the global oil market.
The latest price moves came as markets weighed mixed signals from Washington and Tehran. Iranian President Masoud Pezeshkian said Iran would not bow to U.S. pressure, while leaving the door open to diplomacy. “We will not surrender to pressure,†Pezeshkian said, adding that Tehran remained willing to pursue diplomatic efforts to resolve the standoff.
U.S. President Donald Trump, meanwhile, warned that the United States could “annihilate” Iran if an agreement to end the conflict could not be reached.
According to Reuters, a senior Iranian official said Tehran was considering Washington’s response to an Iranian proposal aimed at ending the hostilities.
However, significant differences between the two sides remained unresolved.
The Strait of Hormuz remains one of the biggest concerns for oil traders. The strategically important waterway handles around one-fifth of global oil and liquefied natural gas shipments under normal conditions. Any prolonged disruption could therefore have a major impact on international energy markets.
Negotiations between the United States and Iran have reportedly included discussions over reopening the Strait of Hormuz and easing restrictions connected with the U.S. naval blockade. Investors are closely monitoring any signs that could point to an improvement or deterioration in the situation.
Supply developments elsewhere have also influenced prices. Saudi Arabia has begun restoring parts of its oil-export infrastructure and increasing shipments, providing some relief to markets. However, uncertainty surrounding the broader regional situation continues to limit confidence in a quick return to normal supply conditions.
Higher crude prices are also creating concerns about inflation and interest rates. Analysts at BCA Research noted, “Higher oil prices play a role in the hawkish repricing of the Fed’s policy path,” emphasising the possible effect of rising energy costs on monetary policy.
Meanwhile, U.S. crude inventories increased by 3 million barrels to 426.4 million barrels in the week ending September 18, according to the Energy Information Administration. Analysts had expected inventories to fall by about 640,000 barrels.
Gasoline inventories declined by 1.7 million barrels, while distillate stocks fell by 400,000 barrels.
For oil markets, the outlook remains closely tied to developments between Washington and Tehran. Any progress in diplomacy could ease supply concerns, while renewed tensions could put further upward pressure on crude prices.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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