Oil Prices Surge as US-Iran Talks Fail to Ease Tensions
Oil prices surged on Thursday despite reports that US and Iranian negotiators in New York were discussing a phased deal to ease tensions in the Persian Gulf. Brent crude rose by 3.4% to settle at $106.60 a barrel, while US West Texas Intermediate futures climbed 2.7% to close at $94.61 per barrel.
The talks between American and Iranian officials came on the sidelines of the UN General Assembly, where both President Donald Trump and Iranian President Masoud Pezeshkian delivered defiant speeches. Mr. Trump said he faced a 'big decision' about whether to negotiate a deal with Iran or 'annihilate' the Islamic Republic.
Iran has set conditions for the US to fulfill before reopening the Strait of Hormuz, including lifting its naval blockade on Iranian ports, ending sanctions, and unfreezing assets. Saudi Arabia has sold nearly 100 million barrels of crude through the Strait since last week, which is roughly one day's global oil demand.