Oil Prices Jump as U.S. and Iran Talks Show Scant Progress

Oil prices extended their gains on Thursday as traders found little evidence that talks between the U.S. and Iran were moving toward a diplomatic resolution to the conflict in the Middle East. Both major crude benchmarks advanced as political tensions remained in focus.

Brent crude, the international benchmark, initially rose 1.9% to $105.02 a barrel. U.S. West Texas Intermediate futures moved 1.7% higher to $93.72 per barrel during the same early market snapshot.

Another Thursday market update showed stronger advances for both contracts. Brent crude futures for November delivery climbed 3.05% to $106.22 a barrel, while November West Texas Intermediate futures gained 2.56% to reach $94.52 per barrel.

The price increases came as investors searched for indications that negotiations between Washington and Tehran were producing progress. The available evidence offered traders little sign that a diplomatic solution was drawing closer.

Tensions between the U.S. and Iran continued to simmer. Iranian President Masoud Pezeshkian accused the U.S. and Israel of contributing to global instability, maintaining the confrontational tone surrounding the dispute.

Pezeshkian delivered those remarks during a speech at the United Nations General Assembly. His comments were presented through a live translation as he addressed Iran’s position and responded to accusations from the U.S. president.

“The United States president described us as terrorists. We have been the victims of terrorism,” Pezeshkian said, according to the live translation. The statement directly rejected the characterization attributed to the U.S. president.

Pezeshkian also said Iran would continue resisting. He asserted that his country would fight back “until our last breath.”

The remarks supplied traders with another indication that tensions remained unresolved as markets monitored diplomatic developments. The continued public confrontation coincided with further gains in Brent and West Texas Intermediate futures.

At the same time, traders were assessing new information about Asian crude imports. The region was on track to receive its highest volume of crude oil since the start of the Iran war, according to a Reuters report.

Asia’s crude imports increased in September to their highest level since the conflict began. The region was projected to import 23.96 million barrels per day during the month, Reuters reported.

That estimated September volume was higher than the 23.38 million barrels per day imported in August. Reuters said the September figure would also represent the region’s largest crude intake since February.

The import estimates were based on data compiled by commodity analysts at Kpler, according to Reuters. The figures provided traders with a separate measure of crude movements as attention remained concentrated on the conflict and diplomatic talks.

The market was therefore tracking two prominent developments contained in the report. One was the limited visible progress toward a diplomatic settlement between the U.S. and Iran, and the other was the projected rise in Asian crude imports.

Brent remained the higher priced benchmark in both reported market snapshots. Its early quoted level of $105.02 a barrel was followed by a November futures price of $106.22, while West Texas Intermediate figures were reported at $93.72 and $94.52 per barrel.

The gains left crude prices moving higher while investors continued to watch statements from political leaders and import data from Asia. With tensions still simmering and talks showing scant evidence of progress, the diplomatic dispute remained central to Thursday’s oil market activity.