US-Iran Diplomacy Fails to Ease Oil Price Concerns

Oil prices rose sharply on Thursday as diplomatic efforts between the US and Iran hit a snag. Brent crude futures climbed 2.34% to $105.50 a barrel, while U.S. West Texas Intermediate (WTI) rose 1.73% to $93.73.

The price gains came despite Iranian President Masoud Pezeshkian's statement that Tehran would not bow to US pressure, but remain willing to pursue diplomatic efforts.

US President Donald Trump warned of the possibility of 'annihilating' Iran if an agreement could not be reached. The Strait of Hormuz remains a major concern for oil traders, handling around one-fifth of global oil and liquefied natural gas shipments.

The situation is further complicated by uncertainty surrounding US diesel exports and supply developments in Saudi Arabia. Higher crude prices are also causing concerns about inflation and interest rates.