Oil advanced on renewed US-Iran tensions | Today’s news
Oil held on to gains on renewed tensions between the U.S. and Iran, with a defiant message from President Masoud Pezeshkian highlighting the still wide gulf between the two sides after months of war in the Middle East.
West Texas Intermediate for November traded above $92 a barrel after adding 1.8% on Wednesday, while Brent settled above $103. At the United Nations, Pezeshkian said Tehran would not respond to threats and laid out a series of conditions before any meaningful talks could resume.
In products, US diesel has been in the spotlight amid speculation that the White House is considering curbing exports. Still, Energy Secretary Chris Wright said the Trump administration is working with refiners to voluntarily curtail their supplies as an alternative to an outright ban on sending fuel abroad.
Oil has soared this year as conflict in the Middle East, as well as the fallout from the Russia-Ukraine war, have limited supplies and damaged infrastructure. Broad gains in energy have lifted global inflation, putting pressure on consumers while raising challenges for central bankers.
Oil products, including diesel, have rallied even more strongly than oil this year, with US retail fuel prices hitting record highs. This has prompted some US lawmakers to advocate for export restrictions. Earlier this week, President Donald Trump said he had urged his advisers to support the ban.
In the Middle East, traders are awaiting further details from Saudi Arabia on plans to resume oil exports through its critical east-west pipeline. The cross-country pipeline – which was damaged in attacks earlier this month – supplies the kingdom’s Red Sea coast and has been a vital solution for transporting cargo through the Strait of Hormuz amid ongoing threats to shipping during the war.
In Hormuz – which links the Persian Gulf to global markets – attacks on vessels continue. The cargo ship was left adrift and burning after being hit by a projectile, according to the UK’s Merchant Marine Operations.
US Treasury Secretary Scott Bessent told Fox News that 17 million barrels of oil a day “sometimes” pass through Hormuz. Still, other market watchers pointed to lower figures, with Clarksons research putting daily volume at around 8 million barrels earlier this month.
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This article was generated from an automated news agency source without text modification.
