Oil prices rise as expected US-Iran talks ease Strait of Hormuz concerns

  • Oil prices rose as Qatari mediators prepared separate talks with Iran and the United States.
  • 12.8 million barrels per day of Middle East crude exports returned in September.
  • Diesel prices reached records amid war-related disruptions and export restrictions in Russia and China.

Oil prices rose on Monday after earlier gains of more than $4 a barrel eased on expectations that Qatari mediators would hold separate talks with Iran and the United States on a possible peace agreement. Brent futures were up 91 cents, or 0.9%, at $105.23 a barrel, while US West Texas Intermediate crude gained 20 cents, or 0.2%, to $92.61 at 1:33 p.m. EDT (1733 GMT). The discussions are expected to address an amended version of Iran's seven-day proposal presented during the United Nations General Assembly. Middle East crude exports recovered to 12.8 million barrels per day in September, with Strait of Hormuz shipments approaching 7.4 million bpd, although flows remained below pre-conflict levels. At the same time, diesel prices have reached records amid war-related supply disruptions, export restrictions and possible US measures affecting diesel sales and exports. The widening Brent-WTI premium reflects expectations that US refiners could process less crude if diesel remains in the domestic market, potentially encouraging additional US crude exports.

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