Oil prices rose for a second straight session after President Trump denied offering Iran sanctions relief to end their seven-month war, while Tehran said it remains open to talks. TotalEnergies moved to capture the higher prices, expanding its share buyback and dividend plans.
Brent crude futures rose $1.49, or 1.4%, to $106.77 a barrel by 0326 GMT on Tuesday. US West Texas Intermediate crude climbed $1.34, or 1.5%, to $93.94, with both benchmarks having closed the previous session nearly $1 a barrel higher.
Trump denies offering sanctions relief
Axios and CNN had reported, citing unidentified US officials, that Trump was willing to ease sanctions and free Iranian funds if Iran showed "concrete progress" on its nuclear program. Trump rejected that account on Monday, calling it untrue and writing on Truth Social that he had offered Iran nothing.
Iran denies seeking nuclear weapons but says it has the right to a domestic nuclear energy program. Iranian President Masoud Pezeshkian told CBS's "Face the Nation" that Tehran was ready for talks but would not accept "bullying or coercion." According to Reuters: "Iran is not seeking war, but will defend itself against pressure, threats and attacks", Pezeshkian said.
Strait of Hormuz remains a sticking point
Iranian Foreign Minister Abbas Araqchi said any reopening of the Strait of Hormuz depends on Tehran's conditions being met, and that a proposed deal would trigger a seven-day countdown to reopening the strait and a pause in fighting. Trump rejected that plan on Saturday, arguing that desperation was driving Iran's push for an agreement on the waterway. The war, which Trump launched with Israel in February as "Operation Epic Fury," has killed thousands of people and disrupted global oil supplies, and Saudi Arabia has been drawn deeper into the conflict this month as Houthi advances in Yemen threaten its Red Sea exports.
TotalEnergies raises shareholder payouts
As prices climbed, TotalEnergies moved to capture the gains. The company added $1 billion to its fourth-quarter share buyback program, bringing the total to $2.5 billion for the quarter, and said buybacks would run $2 billion to $2.5 billion in the first quarter of next year. Its board also set a policy to raise the dividend by more than 5% annually through 2030 and to return at least 40% of free cash flow to shareholders.
By contrast, BP suspended its buyback program in February, and Shell cut its quarterly buyback by $500 million to $3 billion before suspending it, though the program was eventually resumed. TotalEnergies' shares closed down slightly on Monday even as its three peers cautiously inched higher, a sign of general investor bullishness about big oil but also some skepticism about TotalEnergies' own vision for its future.
Sources: Commodities & Futures News, Fool
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