Oil prices jumped by more than 2% on Thursday 24 September, driven by limited progress in diplomatic efforts between the US and Iran and ongoing questions around a potential US ban on diesel exports.
As of 08:03 GMT, Brent crude futures had increased by $2.32, or 2.25%, to reach $105.40 per barrel (bbl), reported Reuters.
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Meanwhile, US West Texas Intermediate (WTI) futures had risen by $1.78, or 1.93%, to $93.94/bbl.
Diplomatic discussions aimed at resolving tensions between the US and Iran have made little headway, according to officials from both countries.
A senior Iranian official told the news agency on Wednesday that Iran and the US “remain far apart on how to end their war but diplomacy must continue”, following duelling speeches at the UN General Assembly in New York.
Iranian President Masoud Pezeshkian stated Tehran would “never surrender to US pressure” and criticised a “bullying mentality” from US President Donald Trump, who used the UN platform to threaten Iran.
The Iranian official said Tehran is reviewing Washington’s response to peace proposals, which include calls for lifting the US naval blockade on Iranian ports and reopening the Strait of Hormuz.
Iran Security Chief Mohsen Rezaei said the key shipping route would stay closed while Iranian conditions remain unmet.
Market participants are also assessing the potential impact of reported US Government discussions about banning diesel exports for 90 days, although the White House has denied such plans, according to Reuters.
US Energy Secretary Chris Wright reiterated on Wednesday that a diesel export ban “would not work and could push up gasoline and jet fuel prices”.
Ultra-low-sulphur diesel futures dropped by around 5% on Wednesday after media reports about the possible restriction.
US distillate inventories, including diesel and heating oil, fell by 428,000bbl to 107.4 million barrels (mbbl) last week, according to Energy Information Administration data, while crude stocks increased by 3mbbl to 426.4mbbl.
