Oil prices edge lower as Iran says it is open to diplomacy to end the war

Oil prices edged lower on Thursday, after climbing 4% in the previous ‌session, as Iran said it remained open to diplomacy to end the US-Iran war, though the two countries remain far apart on ways to do so.

Brent crude futures fell 94 cents, or 0.9%, to $102.13 a barrel, while ​West Texas Intermediate futures eased 59 cents, or 0.7%, to $91.56.

Iran and the United States remain ​divided over how to bring an end to their war, but diplomacy must ⁠continue, a senior Iranian official told Reuters on Wednesday, after Iran's president told the UN ​General Assembly that Tehran would never surrender to US pressure.

Tehran was reviewing Washington's response to its peace ​proposals, which prioritise lifting a US naval blockade on Iranian ports and reopening the Strait of Hormuz, the official said.

A reopening of the Strait of Hormuz and lifting of Washington's naval blockade on Iran were discussed during ​indirect talks on Tuesday, the official said.

Earlier on Wednesday, Iran's security chief Mohsen Rezaei said ​the Strait of Hormuz would not be reopened while Iran's conditions are not met.

US Secretary of State Marco Rubio ‌told ⁠reporters on Wednesday that a deal with Iran would involve hard work over a period of time, adding that Trump also had military options.

Traders also evaluated possible curbs on diesel exports.

Ultra-low-sulfur diesel futures were down about 5% in midday trading after website Politico said the Trump administration was ​preparing plans for a 90-day ​diesel ban, but ⁠the White House denied this.

However, Bloomberg reported later in the day, citing sources, that Energy Secretary Chris Wright told oil industry leaders to brace for ​possible US curbs on diesel exports in calls late Tuesday.

Wright had said ​earlier on ⁠Wednesday that a diesel export ban would not work even though US President Donald Trump said he would support it. Analysts and market watchers have warned that such a move would do little to ease high ⁠energy prices ​and could worsen global supplies and further disrupt economies.

Meanwhile, ​US crude inventories rose by 3 million barrels to 426.4 million barrels last week, the Energy Information Administration said. Analysts polled ​by Reuters had expected a 641,000-barrel draw. Fuel stocks fell.

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