Oil prices rise as Trump rejects Iran sanctions relief
Oil prices edged higher after Donald Trump said he would not ease sanctions on Iran, while Qatar said it was mediating between Tehran and Washington.
Brent crude futures rose 1.1% to $103.73 a barrel and U.S. West Texas Intermediate increased 0.38% to $89.72 after Donald Trump stated he would not provide sanctions relief to Iran. The price move coincided with Qatar’s foreign ministry saying it was exchanging messages between the United States and Iran to seek a diplomatic breakthrough. Energy researcher Saul Kavonic warned that the situation remains volatile, with costly logistics and the possibility of the United States permitting sales of red-dyed diesel rather than imposing an export ban to ease consumer prices ahead of the mid-term elections.
Saudi Arabia restarted oil tanker loadings from its Red Sea port of Yanbu, contributing to a rebound in West Asian crude exports, now at their highest level since the February conflict began. U.S. crude inventories rose by roughly 1.02 million barrels in the week ending September 25, while distillate stocks fell, according to API data. Traders observed the Brent-WTI spread widening to its widest in four months as they evaluated potential U.S. diesel export restrictions.
Why it matters
The story shows how U.S. policy and Middle-East tensions directly influence global oil prices and market stability.
How this story developed
- Sep 14 Trump says United States remains open to talks with Iran to end war
- Sep 24 US and Iranian negotiators in New York are discussing a step-by-step plan that would see Iran reopen the Strait of Hormuz while the United States ends its economic blockade, though both sides cling to leverage.
- Sep 24 The Senate voted down the war‑powers resolution.
- Sep 25 Iranian President Masoud Pezeshkian arrived in New York, the first Iranian head of state to set foot in the United States.
- Sep 25 President Donald Trump signaled interest in a deal before the midterm elections.
- Sep 26 Iran awaited an official U.S. reply to its UN‑transmitted peace initiative.
- Sep 26 US President Donald Trump says he rejects Iran’s proposal of a seven‑day roadmap to end the war, reopening the Strait of Hormuz.
- Sep 26 Trump’s UN speech introduced a direct threat to Iran and highlighted claimed peace achievements.
- Sep 27 Iranian President Masoud Pezeshkian said Iran will remain resolute and not retreat despite President Donald Trump's rejection of Iran’s seven‑day ceasefire and Strait of Hormuz reopening proposal.
- Sep 27 President Trump dismissed Iran's proposal and no formal U.S. reply has been transmitted through mediators.
- Sep 27 Iran's foreign minister says Tehran is waiting for a US reply, via mediators, to its offer to reopen the Strait of Hormuz if Washington ends hostilities and releases frozen assets.
- Sep 27 Iran’s foreign minister warned Tehran could restart war over frozen assets.
- Sep 29 President Trump said U.S. negotiators will resume talks with Iran this week after rejecting Tehran's proposal.
- Sep 29 Araghchi announced he will depart for Tehran within hours after the New York meeting.
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