US-Iran Diplomatic Deadlock Drives Oil Prices Higher

Oil prices surged on Thursday due to ongoing diplomatic tensions between the US and Iran. Despite little sign of progress in talks, Brent crude futures rose by $1.63 or 1.58% to reach $104.71 a barrel at 1200 GMT.

The West Texas Intermediate futures also increased by $1.34 or 1.49% to $93.53 a barrel. The rise came after reports suggested Iran gave the US one week to meet its demands, including lifting the naval blockade on Iranian ports and reopening the Strait of Hormuz.

A senior Iranian official stated that Tehran was reviewing Washington's response to its peace proposals. Analysts have warned that a potential US ban on diesel exports would do little to ease high energy prices and could worsen global supplies and disrupt economies.