Brent crude, the global benchmark, rose more than 4% to trade above $107 a barrel. This reversed losses from earlier days, when Brent had fallen below the important $100 level. Oil prices jumped sharply on Thursday as fresh comments from Iran and the US made the future of the conflict harder to predict.
The White House is reportedly preparing a 90-day ban on US diesel exports. Average US gasoline prices reached about $4.85 per gallon on Thursday, up 53% from a year earlier, according to Yahoo Finance.
Trump said Iran may be waiting to see how the US midterm elections go before reaching an agreement. He said he believed a deal would make sense after the election, while also saying he had been considering extremely severe military action against Iran. The attacks have disrupted another important route for energy shipments, adding to pressure on the global oil market, according to Yahoo Finance.
Houthi attacks are also affecting Saudi Arabia’s ability to move oil through the Red Sea. The latest US development could put even more pressure on fuel markets. US fuel prices are already much higher than they were a year ago.
US West Texas Intermediate (WTI) crude also climbed by around 4%. WTI was trading near $96 a barrel, showing that both major oil benchmarks were reacting to the latest developments around Iran and the US, according to Yahoo Finance.
Pezeshkian said Tehran would continue to refuse to bow to US pressure, raising fresh concerns about whether the two countries can reach a deal, according to Yahoo Finance. Pezeshkian also said Iran remains committed to its nuclear programme. Iran has repeatedly said its nuclear programme is meant for civilian energy purposes. President Donald Trump has repeatedly said Iran must not be allowed to have a nuclear weapon. Speaking at the United Nations, Trump said he believes a deal could come after the US midterm elections.
Comments from Iranian President Masoud Pezeshkian were one of the main reasons oil prices moved higher. However, the US has made Iran’s nuclear capabilities a major issue in the ongoing conflict. This remains a key US position as Washington deals with Tehran during the conflict. Trump has also indicated that he expects the US and Iran to eventually reach an agreement.
