Oil Prices Surge as US-Iran Talks Stall and Diesel Export Ban Looms

Oil prices rose around 2% on Thursday as diplomatic talks between the US and Iran showed little sign of progress, while investors focused on uncertainty about a potential US ban on diesel exports.

Brent crude futures were up $2.03, or 2%, at $105.11 a barrel at 1320 GMT, while West Texas Intermediate futures were up $1.48, or 1.6%, at $93.64 a barrel.

The US and Iran remain divided over how to end their conflict, with Iranian President Hassan Rouhani telling the UN General Assembly that Tehran would never surrender to US pressure.

A senior Iranian official said Tehran was reviewing Washington's response to its peace proposals, which prioritise lifting the US naval blockade on Iranian ports and reopening the Strait of Hormuz.