Oil Prices Rebound Above $90 Amid Lack of US-Iran Diplomatic Progress

Oil prices have rebounded above $90 a barrel after falling 17% from cycle highs, as ongoing indirect talks between the U.S. and Iran on the sidelines of the United Nations General Assembly showed no concrete sign of progress.

The recovery in oil was driven by a mix of geopolitical developments, including nerves over reports that the Trump administration could be preparing a 90-day ban on U.S. diesel exports to force domestic energy prices lower.

Data yesterday showed U.S. crude inventories rose by 3 million barrels to 426.4 million barrels last week, defying expectations of a 641,000-barrel draw.

The USD/JPY has risen above 158, its highest level in three weeks, driven by strong gains in the U.S. dollar and a widening Fed-BoJ rate differential, with traders focusing on persistent inflation and exceptionally strong U.S. economic activity.