Iran-US Diplomatic Stalemate Drives Oil Prices Higher
Oil prices rose around 2% on Thursday as diplomatic talks between the US and Iran showed little sign of progress. The uncertainty surrounding a potential US ban on diesel exports also weighed on investors' minds.
Brent crude futures were up $2.03, or 2%, at $105.11 a barrel at 9:20 a.m. ET, while West Texas Intermediate (WTI) futures were up $1.48, or 1.6%, at $93.64 a barrel.
Reports suggest Iran gave the US one week to meet its publicly stated demands, including lifting the US naval blockade on Iranian ports and reopening the Strait of Hormuz. However, Iran's president told the UN General Assembly that Tehran would never surrender to US pressure.
A senior Iranian official stated that Tehran was reviewing Washington's response to its peace proposals. The EU expressed concern about a potential US ban on diesel exports, which could have a negative impact on both sides.