Oil extends gains on little sign of progress in US-Iran talks
FILE PHOTO: Drone view of oil tanker HELGA berthed at one of Iraq’s southern offshore oil terminals near Basra, April 24, 2026. REUTERS/Mohammed Aty/File Photo
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LONDON, Sept 24 : Oil prices rose more than 2 per cent on Thursday as diplomatic talks between the US and Iran showed little sign of progress, while investors focused on uncertainty about a potential US ban on diesel exports.
Brent crude futures were up $2.32, or 2.25 per cent, to $105.40 a barrel at 0803 GMT, while West Texas Intermediate futures were up $1.78, or 1.93 per cent, to $93.94 a barrel.
Iran and the US remain divided over how to end their conflict, but diplomacy must continue, a senior Iranian official told Reuters on Wednesday, after Iran’s president told the UN General Assembly that Tehran would never surrender to US pressure.
The official said Tehran was reviewing Washington’s response to its peace proposals, which prioritise lifting a US naval blockade on Iranian ports and reopening the Strait of Hormuz.
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However, the physical market for oil is nowhere near a fully normalised situation, said Priyanka Sachdeva, head of market insights at Phillip Nova.
“Brent retains a larger geopolitical and sea-route premium because international crude is more directly exposed to Middle East and Hormuz disruption, while WTI benefits more from relatively insulated US supply,” Sachdeva added.
Earlier on Wednesday, Iran’s security chief Mohsen Rezaei said the Strait of Hormuz would not be reopened while Iran’s conditions are not met.
US Secretary of State Marco Rubio told reporters on Wednesday that a deal with Iran would involve hard work over a period of time, adding that President Donald Trump also had military options.
Traders also evaluated possible US curbs on diesel exports. Ultra-low-sulfur diesel futures were down about 5 per cent in US midday trading on Wednesday after website Politico said the Trump administration was preparing plans for a 90-day diesel ban, but the White House denied this.
US Energy Secretary Chris Wright had said earlier a diesel export ban would not work, even though Trump said he would support it.
Analysts and market watchers have warned such a ban would do little to ease high energy prices and could worsen global supplies and further disrupt economies.
US distillate stockpiles, including diesel and heating oil, fell 428,000 barrels to 107.4 million barrels last week, Energy Information Administration data showed.
Meanwhile, US crude inventories rose 3 million barrels to 426.4 million barrels last week, though analysts polled by Reuters had expected a 641,000-barrel draw.
Source: Reuters
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