Iran Diplomacy Lifts Oil Prices, US-Iran Conflict Remains at Impasse

Oil prices declined on Thursday after increasing 4% in the previous session as Iran signaled its openness to diplomacy to end the US-Iran war. The Brent crude futures fell by $0.94, or 0.9%, to $102.13 a barrel, while West Texas Intermediate futures eased by $0.59, or 0.7%, to $91.56.

Iran's senior official told Reuters that diplomacy must continue despite the two countries being far apart on how to end their war. The official stated that Tehran 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 security chief Mohsen Rezaei said earlier this week that the Strait of Hormuz would not be reopened unless Iran's conditions are met. The US Secretary of State Marco Rubio stated that a deal with Iran would require hard work over a period of time, adding that Trump also had military options.

Traders were also evaluating possible curbs on diesel exports after the White House denied reports of a 90-day diesel ban. However, Energy Secretary Chris Wright told oil industry leaders to brace for possible US curbs on diesel exports in calls late Tuesday.