- Oil prices rose for the fourth consecutive session amid US-Iran conflict uncertainty
- Brent crude traded above $91 a barrel, WTI hovered near $85 per barrel
- Diesel prices surged due to supply disruptions and record-high US production margins
Oil prices rose for a fourth straight session on Wednesday as the US-Iran conflict showed little sign of moving towards a resolution, keeping uncertainty around the Strait of Hormuz at the centre of the energy market.
Brent crude traded above $91 a barrel, after gaining 4.5% over the previous three sessions, while West Texas Intermediate was near $85. US President Donald Trump said Tuesday that there were no talks underway with Tehran, reducing hopes of a near-term breakthrough after almost six months of conflict.
Crude prices have surged since the conflict began in late February, adding to inflationary pressure across economies. Energy markets are also dealing with disruptions linked to the Russia-Ukraine war, including attacks on refineries.
Diesel markets have been hit harder. Disrupted Middle East flows and Russia's suspension of exports have tightened supplies, pushing the US margin for producing diesel from crude above $100 a barrel, a record level.
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With talks stalled, Washington is preparing to increase economic pressure on Tehran while maintaining its blockade of Iranian ports. US Treasury Secretary Scott Bessent has indicated that a package of new measures could be announced this week.
The UAE has also said it will suspend trade and financial transactions with Iran following what it described as regional escalations. The country, located across the Persian Gulf from Iran, has faced repeated attacks, including against shipping.
There was also a fresh supply signal from the US. The American Petroleum Institute reported a modest decline in nationwide crude inventories, including at Cushing, Oklahoma, a key storage hub.
Distillate inventories, which include diesel, were also reported to have fallen.
The lack of negotiations leaves the future of the Strait of Hormuz uncertain. Iran and the US remain divided over how the waterway should be managed, while traffic through the key route linking Persian Gulf producers with global markets remains limited.
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