Oil prices jumped on Thursday after statements from both Tehran and Washington complicated the outlook for a resolution to the global energy crisis.
Futures on Brent crude (BZ=F), the international benchmark, rose by more than 4% to trade above $107 per barrel, taking back losses over the past few days that had pushed the contract below the key $100 mark. Those on US WTI crude (CL=F) ticked up by roughly the same margin to trade near $96.
Leading oil prices higher on Thursday were comments from Iranian President Masoud Pezeshkian that Tehran would continue to refuse to bow to US pressure. Pezeshkian also reaffirmed Tehran’s commitment to maintaining its nuclear program.
While Iranian leaders have long insisted the country’s nuclear program is only used for producing civilian energy, President Trump and other senior leaders in the White House have made Iran’s nuclear capabilities a key red line in the war between the two nations. Trump has repeatedly asserted that Iran “must not have a nuclear weapon.”
Trump said in his own comments to the UN that while he was debating whether to “annihilate” Iran, he expects a deal to be made between Washington and Tehran following the US midterm elections.
“I believe we’ll make a deal right after the election because it doesn’t make sense for them not to,” Trump said. “They’re waiting to see how I do in the midterm election.”
The comments from the Iranian and US leaders come as hopes for a diplomatic resolution for the conflict, now into its sixth month, had begun to reemerge as direct military action has once again calmed in the Persian Gulf.
Yet even so, the global oil market continues to face multiple pressures. The Strait of Hormuz remains largely blocked to consistent through-traffic, and Houthi attacks have continued to disrupt Saudi Arabia’s ability to export oil through the Red Sea. Attacks by the Ukrainian military have further damaged Russia’s refining sector.
This photograph shows the Nahr Bin Umar gas field in southern Iraq on September 17, 2026. Basra has long been a key cog in Iraq’s economy but, after months of Iran choking off Gulf oil exports with its blockade in the Strait of Hormuz, the city is suffering. (HUSSEIN FALEH / AFP via Getty Images)
Those catalysts have also shown up in force in the US, where news that the White House is reportedly preparing to institute a 90-day diesel export ban placed further pressure on the global energy complex. Gasoline prices, averaging $4.85 on Thursday, have climbed by 53% from a year prior, while diesel prices at $6.51 have climbed by a stronger 76%.
While an export ban on diesel could bring short-term relief to US consumers, especially those in the Gulf Coast region where the bulk of US refining capacity is located, market analysts and industry participants have warned a ban could have unintended consequences. If refiners can’t export diesel, for example, they may reduce production, which would also lower gasoline supply, thereby potentially increasing price pressures on Americans.
The United States has also become a key global supplier of diesel since the outbreak of the Iran war. Removing US supply would likely push prices up even more severely in key ally countries such as the UK, France, and Germany, where cost pressures have been more severe than those seen in the United States.
Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at jake.conley@yahooinc.com.
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