Brent crude rose above $100 a barrel on Thursday as stalled US-Iran talks raised concerns over prolonged conflict and potential disruptions to oil supplies.
Brent crude futures rose as high as $99.30 a barrel in the previous session before settling at $98.03.
Brent crude futures for December delivery traded at $100.49 a barrel at 12.59 p.m. local time (0959 GMT), up 2.5% from the previous close.
US benchmark West Texas Intermediate (WTI) crude futures for November delivery traded at $92.57 a barrel at the same time.
- Stalled talks revive supply concerns
Oil prices were supported by reports that US Secretary of State Marco Rubio asked an Iranian delegation, including Foreign Minister Abbas Araghchi, to leave the country immediately after talks between Washington and Tehran stalled.
A US official told news outlet Axios that the White House believed on the morning of Monday, Sept. 28, that progress could be made in talks with Iran later that day, but concluded by the afternoon that negotiations had reached an impasse.
Two US officials, speaking to the Associated Press (AP), said Araghchi had initially been expected to remain in New York until Sept. 30 to hold indirect talks with the US aimed at reopening the Strait of Hormuz, ending the conflict and restarting negotiations over Iran's nuclear program.
The officials claimed that after limited progress in contacts involving Qatari mediators over the weekend, Rubio asked the Iranian delegation to leave the country.
Iran's Permanent Mission to the UN, however, denied reports that the delegation had been forced by the US to leave New York.
The developments weakened expectations for an end to the conflict and the reopening of the Strait of Hormuz, providing further support to oil prices.
- Washington considers diesel export ban
Meanwhile, reports that the US is considering a ban on diesel exports also supported oil prices by raising concerns over tighter refined product supplies in global markets.
US President Donald Trump said his administration is considering a ban on diesel exports, but noted that such a move could push gasoline prices higher.
Trump said he has frequently discussed the issue with US Energy Secretary Chris Wright and Interior Secretary Doug Burgum.
- Expectations for delayed Fed rate hikes support prices
Growing expectations that the US Federal Reserve (Fed) could delay further interest rate hikes also supported oil prices.
Experts said easing inflationary pressures alongside continued resilience in the US economy could allow the Fed to hold off on raising interest rates in the near term.
Money market pricing showed expectations for a Fed rate hike in October falling to 38% from around 70%.
Expectations that further rate hikes could be delayed supported oil prices on prospects that pressure on economic activity and oil demand could ease.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr
