Oil prices recovered on Wednesday after US President Donald Trump denied he was willing to ease sanctions on Iran, countering expectations that Qatar’s shuttle diplomacy could produce progress toward peace talks. Brent crude futures rose $1.14, or 1.11%, to $103.73 a barrel by 0131 GMT, while US West Texas Intermediate gained 34 cents, or 0.38%, to $89.72. Brent was on course for a monthly increase of about 14%, its largest monthly rise since July, and WTI was tracking a 4% gain after exceeding $106 for the first time since May. The gap between the benchmarks also widened to its broadest level in four months as traders assessed possible US restrictions on diesel exports. Such restrictions could increase domestic diesel supply and prompt US refiners to process less crude. Trump was considering allowing sales of red-dyed diesel instead of imposing an export ban, a measure intended to ease prices as the November mid-term elections approach. Oil logistics remained volatile, expensive and constrained, Saul Kavonic, head of energy research at MST Marquee, said, citing recovering flows through the Strait of Hormuz, possible alternatives to a US diesel restriction and a lack of material Iranian escalation over the previous 24 hours. Qatar said it hoped messages exchanged between Iran and the US could establish common ground for an agreement that would limit the conflict’s repercussions. Trump rejected an Axios report that said US officials believed he was prepared to offer Iran sanctions relief and release frozen Iranian funds in exchange for concrete nuclear-related steps. Middle East crude exports rebounded in September to 16.328 million barrels per day, the highest level since the US-Israeli war with Iran began in late February. Saudi Arabia also resumed tanker loadings from Yanbu after restarting the East-West Pipeline. US crude and gasoline inventories rose last week while distillate stocks declined, according to American Petroleum Institute data cited by market sources. Official US Energy Information Administration inventory data was due at 10:30 a.m. EDT, or 1430 GMT, with Reuters-polled analysts expecting crude and product inventories to have fallen.