Oil Prices Surge Amid Iran-US Tensions and Diesel Export Ban Debate

Oil prices rose nearly 2% on Wednesday as traders assessed Iranian President Masoud Pezeshkian's statement that his country would never surrender to US demands. This came after US President Donald Trump warned he could 'annihilate' Iran, although Tehran is still open to diplomacy.

Brent crude futures increased by $1.84, or 1.85%, to $101.09 a barrel, while West Texas Intermediate futures gained 69 cents, or 0.76%, to $91.21. This followed Trump's speech at the UN General Assembly in New York, where he backed an idea to ban diesel exports and lower record-high prices.

However, US Energy Secretary Chris Wright later stated that such a move would not work, echoing warnings from analysts and market watchers. They argue that a diesel export ban would have little impact on high energy prices and could worsen global supplies and disrupt economies further.