Iran's Diplomatic Signals Weigh on Oil Prices Amid Volatility
Oil prices fell on September 24 after Iran signaled it was ready to continue diplomatic efforts to end the war with the US. The market had been influenced by Iran's statement, which came despite significant differences between Tehran and Washington over approaches to a possible settlement.
Brent crude futures dropped 94 cents, or 0.9%, to $102.13 a barrel, while US WTI crude lost 59 cents, or 0.7%, to $91.56 a barrel. A senior Iranian official emphasized the need for diplomacy, saying Iran was studying Washington's response to its peace proposals.
Iran's demands include the lifting of the US naval blockade of Iranian ports and the resumption of shipping through the Strait of Hormuz. However, Iran's security official Mohsen Rezaei said the strait would not be reopened until the US met Tehran's demands.
The market was also assessing possible restrictions on US diesel exports, with ultra-low-sulfur diesel futures falling by about 5% during trading. The White House denied reports of a plan for a 90-day export ban, but Energy Secretary Chris Wright had urged representatives of the oil industry to prepare for possible restrictions.
Meanwhile, U.S. commercial crude oil inventories increased by 3 million barrels over the past week to 426.4 million barrels, exceeding analysts' expectations.