Oil prices inch higher as US-Iran talks stall and supply worries linger
West Texas Intermediate futures rose modestly, staying under US$93 a barrel, while uncertainty over US-Iran negotiations and Middle-East supply disruptions kept markets uneasy.
Oil markets experienced choppy trading, with WTI futures ending the day just under US$93 a barrel after a surge of up to 4.5 percent. Strong physical demand collided with a gradual easing of Middle-East supply disruptions, yet traders remain skeptical after US-Iran cease-fire talks produced no tangible outcome. President Donald Trump indicated willingness to ease sanctions and unfreeze Iranian assets only if the nuclear issue moves forward, while Iranian officials expressed doubt about reaching a deal before the November midterms.
Analysts from TD Securities and Capital Economics highlighted the risk of escalation by Iran, the Houthis, or the United States itself, which could keep oil prices elevated. Meanwhile, Saudi Arabia restored roughly half of the flow through its East-West pipeline, supporting its export capacity, but broader market sentiment stays bearish amid ongoing geopolitical tension.
Why it matters
Oil price movements affect global inflation, consumer fuel costs, and economic stability worldwide.
How this story developed
- Aug 28 Pakistan, Saudi Arabia and Turkey launch Mecca Defence Alliance, secretariat set in Riyadh
- Sep 21 Prime Minister Andy Burnham said he agreed to Saudi Arabia's request for defensive air-to-air refuelling while travelling to New York for a United Nations General Assembly meeting.
- Sep 22 Burnham announced the decision while traveling to the UN General Assembly.
- Sep 22 The United States declined to conduct direct kinetic strikes against the Houthis.
- Sep 22 UN agencies warned that displacement could rise to over 230,000 if the fighting continues.
- Sep 24 The Houthis seized the port city of Mocha and nearby Bab al‑Mandab positions.
- Sep 24 Iran’s president publicly rejected any surrender to the United States at the UN.
- Sep 25 Foreign minister Hakan Fidan announced willingness to meet the kingdom’s technical military needs.
- Sep 25 The UK moved from earlier talks to a formal agreement to provide the Voyager tanker.
- Sep 25 Trump publicly voiced support for Saudi self‑reliance against Houthi attacks.
- Sep 26 UN Security Council issued a condemnation of Houthi attacks on Saudi Arabia.
- Sep 27 Government forces launched intensified air and ground attacks in Taiz province.
- Sep 27 France announced a military mission to Saudi Arabia.
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