Oil Holds Advance on Renewed Tensions Between the US and Iran

Oil held a gain on renewed tensions between the US and Iran, with a defiant message from President Masoud Pezeshkian highlighting the still-wide gap between the two sides after months of war in the Middle East.

Oil held a gain on renewed tensions between the US and Iran, with a defiant message from President Masoud Pezeshkian highlighting the still-wide gap 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 that Tehran would not respond to threats, and laid out a number of conditions before any meaningful talks could resume. 

In products, US diesel was in focus amid speculation that the White House is considering export curbs. Still, Energy Secretary Chris Wright said the Trump administration was working with refiners to voluntarily rein in their shipments as an alternative to an outright ban on sending the fuel abroad.

Crude has surged this year as the conflict in the Middle East, as well as the fall-out from the Russia-Ukraine war, cut supplies and damaged infrastructure. Broad-based gains in energy have lifted global inflation, heaping pressure onto consumers, while boosting challenges for central bankers.

Oil products including diesel have rallied even harder than crude this year, with US retail prices of the fuel surging to a record. That’s prompted some US lawmakers to advocate for curbs on exports. Earlier this week, President Donald Trump said he’s encouraged his advisers to support a ban.

In the Middle East, traders are awaiting further details from Saudi Arabia on plans to restart oil exports via its critical East-West pipeline. The cross-country conduit — which was damaged in attacks earlier this month — feeds the kingdom’s Red Sea coast and has been a vital workaround to shipping cargoes via the Strait of Hormuz amid sustained threats to shipping during the war.

In Hormuz — which links the Persian Gulf to global markets — attacks on vessels have continued. A cargo ship was left adrift and burning after being struck by a projectile, according to UK Maritime Trade Operations.

US Treasury Secretary Scott Bessent told Fox News that 17 million barrels of oil “sometimes” transited through Hormuz per day. Still, other market watchers have pointed to lower figures, with Clarksons Research putting the daily volume at about 8 million barrels earlier this month.

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