Oil prices surged after Donald Trump made a bold claim about Iran that shifted the market’s direction. The president denied reports of offering sanctions relief, while Qatar pushed for diplomatic breakthroughs amid ongoing Middle East tensions.
Crude prices rise while hopes for a US-Iran breakthrough remain uncertain
Oil prices rose on Wednesday after U.S. President Donald Trump denied willingness to ease sanctions on Iran. Brent crude futures climbed $1.14, or 1.11%, to $103.73 a barrel by 0131 GMT, per CNBC. U.S. West Texas Intermediate crude gained 34 cents, or 0.38%, to $89.72.
Trump responded to an Axios report suggesting he would offer Iran sanctions relief for nuclear concessions. “This is untrue. I offered them NOTHING,” Trump wrote on Truth Social. The denial came as Qatar pursued shuttle diplomacy between Tehran and Washington.
Qatari Foreign Ministry spokesperson Majed al-Ansari addressed reporters about the diplomatic efforts on Tuesday. “We are exchanging messages between the parties, and we’re working towards establishing a common ground in order to get into a deal that would save all of us from the repercussions of the conflict,” al-Ansari said. The talks aim to de-escalate tensions that have driven oil prices higher in recent months.
Brent is on track for a monthly gain of around 14%, its largest climb since July. The spread between Brent and WTI widened to its widest in four months this September. Traders watched potential U.S. plans to restrict diesel exports, which could create domestic oversupply. Trump is now considering allowing sales of red-dyed diesel instead of an export ban.
Meanwhile, Saudi Arabia resumed oil tanker loadings from its Red Sea port of Yanbu on Tuesday. The kingdom restarted operations on the East-West Pipeline. Crude oil exports from Middle East producers rebounded in September to 16.328 million barrels per day.
Saul Kavonic, head of energy research at MST Marquee, noted that recovering flows through the Strait of Hormuz eased some pressure. However, the situation “remains volatile, oil logistics are expensive and constrained,” Kavonic added. U.S. crude inventories rose by 1.02 million barrels last week, according to American Petroleum Institute data.
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