US-Iran Diplomatic Stalemate Sends Oil Prices Soaring
Oil prices increased on Thursday due to the ongoing diplomatic stalemate between the US and Iran. Brent crude futures rose 43 cents, or 0.4%, to $103.51 a barrel, while West Texas Intermediate futures climbed 35 cents, or 0.4%, to $92.51 a barrel.
The US-Iran talks showed no concrete sign of progress, with Iran demanding the lifting of a US naval blockade on Iranian ports and the reopening of the Strait of Hormuz. However, US Secretary of State Marco Rubio stated that a deal would involve hard work over a period of time and mentioned military options.
Analysts warn that a potential 90-day diesel export ban, which was reportedly being considered by the Trump administration, could worsen global shortfalls rather than ease high energy prices. The ban is seen as unlikely to happen, with Energy Secretary Chris Wright stating it would not work.