Oil prices extended gains on Thursday after jumping 4% in the prior session, with US-Iran diplomacy showing no concrete progress. Brent crude and WTI both edged higher even as Iran's president told the UN General Assembly that Tehran would never surrender to US pressure, while a separate dispute over a possible US diesel export ban weighed on distillate futures.
Crude climbs as Iran talks stay deadlocked
Oil climbed 4% in the previous session and extended those gains on Thursday, even though talks between the United States and Iran produced no visible breakthrough. Brent crude futures rose 43 cents, or 0.4%, to $103.51 a barrel at 0630 GMT, while West Texas Intermediate climbed 35 cents, or 0.4%, to $92.51 a barrel. Both benchmarks had fallen in Asian morning trade before rebounding as traders struggled to find a clear direction amid the geopolitical deadlock.
A senior Iranian official told Reuters that Tehran and Washington remain divided over how to end their war, though diplomacy must continue. The official said Iran was reviewing Washington's response to its peace proposals, which prioritize lifting a US naval blockade on Iranian ports and reopening the Strait of Hormuz. Iran's president told the UN General Assembly that Tehran would never surrender to US pressure. Iran's security chief Mohsen Rezaei said on Wednesday that the Strait of Hormuz would not reopen until Iran's conditions are met.
According to Reuters, Priyanka Sachdeva, head of market insights at Phillip Nova, said "Brent retains a larger geopolitical and sea-route premium" than WTI because international crude is more directly exposed to Middle East and Hormuz disruption while US supply is relatively insulated. US Secretary of State Marco Rubio told reporters on Wednesday that a deal with Iran would involve hard work over time, and that President Donald Trump also had military options.
Diesel export ban dispute adds pressure
Traders also weighed possible curbs on diesel exports. Ultra-low-sulfur diesel futures fell about 5% in midday trading after Politico reported the Trump administration was preparing plans for a 90-day diesel export ban, though the White House denied the report. US Energy Secretary Chris Wright said earlier on Wednesday that a diesel export ban would not work, even though Trump said he would support it. Analysts have warned such a move would do little to ease high energy prices and could worsen global supplies.
US distillate stockpiles, including diesel and heating oil, fell by 428,000 barrels to 107.4 million barrels last week, Energy Information Administration data showed. Meanwhile, US crude inventories rose by 3 million barrels to 426.4 million barrels last week, though analysts polled by Reuters had expected a 641,000-barrel draw.
Source: Investing.com
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