Oil prices jump $2 as Iran knocks hopes of diplomatic progress
USO•Oil prices rose more than $2 on Wednesday after Iran signaled little reason to expect diplomatic progress with the United States. Brent gained 1.9% to $110.85 a barrel and U.S. WTI rose 2.2% to $99.95, with falling U.S. crude and product inventories also supporting prices.
1. Prices gain on tensions
Brent crude futures rose $2.06, or 1.9%, to $110.85 a barrel by 1048 GMT, while U.S. West Texas Intermediate crude gained $2.13, or 2.2%, to $99.95. Iran's Foreign Minister Abbas Araqchi said Iran was prepared to defend itself, and President Masoud Pezeshkian said the United States could not expect dialogue while blockading and threatening Iran.
2. Attacks and stockpiles
At least 18 vessel attacks were recorded over the past two weeks, Kpler data showed. LSEG analysts warned that Iran was targeting tankers beyond the Strait of Hormuz, including in the Gulf of Oman, threatening Gulf crude loadings and ship-to-ship transfers. U.S. crude stocks fell by 4.9 million barrels in the week ended October 16, while gasoline and distillate inventories also declined, market sources said, citing API data.
