Oil prices edged lower Thursday after rising 4% in the previous session, as markets assessed uncertain US-Iran diplomacy, potential restrictions on US diesel exports and a larger-than-expected increase in crude inventories. Brent crude futures fell 0.9% to $102.13 a barrel, while West Texas Intermediate declined 0.7% to $91.56. A senior Iranian official said Tehran was reviewing Washington's response to proposals focused on lifting a US naval blockade and reopening the Strait of Hormuz, although the two sides remained far apart. Iranian security chief Mohsen Rezaei said the waterway would remain closed until Iran's conditions were met, while US Secretary of State Marco Rubio said any agreement would require sustained negotiations and that Donald Trump retained military options. US crude inventories rose by 3 million barrels to 426.4 million last week, versus expectations for a 641,000-barrel draw, while fuel stocks fell. Diesel futures dropped about 5% after reports of a possible 90-day export ban, though the White House denied the plan; later reporting said Energy Secretary Chris Wright had told industry leaders to prepare for possible restrictions. Analysts warned that such measures could tighten global supplies and disrupt refinery operations.