Oil Prices Surge as US-Iran Talks Stall Amid Diesel Export Ban Uncertainty

Oil prices rose over 2% on Thursday as diplomatic talks between the US and Iran showed little sign of progress. The Brent crude futures price reached $105.40 a barrel, while West Texas Intermediate futures were up to $93.94 a barrel.

The US and Iran remain divided over how to end their conflict, with Tehran reviewing Washington's response to its peace proposals. These proposals prioritize lifting the US naval blockade on Iranian ports and reopening the Strait of Hormuz.

However, a senior Iranian official stated that diplomacy must continue despite the lack of progress. The physical market for oil is still far from normalization, with Brent retaining a larger geopolitical premium due to exposure to Middle East disruption.