Oil prices climbed on Wednesday after U.S. President Donald Trump said he would not relax sanctions on Iran, reversing earlier market drops that had been linked to a surge in crude supplies from the Middle East.
Oil Prices and Market Reaction
The Brent futures contract for November delivery, which expires on Wednesday, rose by 71 cents to settle at $103.30 a barrel, a gain of 0.69% as of 0408 GMT. The more actively traded December contract added 35 cents, reaching $96.51. In the United States, West Texas Intermediate crude increased by 43 cents, or 0.48%, to close at $89.81.
These moves pushed Brent up roughly 14% for the month, marking its strongest monthly rise since July, while WTI advanced about 4% after briefly breaking above $106 for the first time since May. Traders noted that the widening gap between Brent and WTI, now at its broadest in four months, reflected concerns over possible U.S. restrictions on diesel exports.
Sanctions and Geopolitical Developments
President Trump rejected an Axios report that cited U.S. officials as saying he would offer Iran relief from sanctions and unfreeze assets in exchange for concessions on its nuclear program. Qatar voiced optimism that shuttle diplomacy between Tehran and Washington might eventually produce measurable progress.
Sugandha Sachdeva, founder of SS WealthStreet, explained that lingering uncertainty about any potential easing of sanctions and the ongoing negotiations kept a geopolitical risk premium embedded in oil prices. She added that improving supply conditions could limit further price gains, but that renewed disruption or an escalation in regional tensions might spark another rally.
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He is also weighing the option of permitting sales of red-dyed diesel rather than imposing a full export ban, a move intended to ease consumer costs ahead of the November midterm elections.
Regional Supply Recovery and U.S. Inventory Data
Saudi Arabia restarted loading oil tankers from the port of Yanbu after bringing its East-West Pipeline back into service, a step that helped lift regional export volumes.
Crude shipments from Middle Eastern producers rose to 16.328 million barrels per day in September, the highest level recorded since the conflict that began between the United States and Israel in late February. According to research from J.P. Morgan, those regional exports now sit only 11% below the volumes seen before the war.
Over the most recent five-day period, the ten-day average for total global oil exports held steady at 20.5 million barrels per day, representing about 89% of the volumes that were typical in 2025.
In the United States, market sources citing the American Petroleum Institute reported that crude oil and gasoline inventories increased last week, while stocks of distillate fuels fell. The Energy Information Administration is slated to release its official inventory figures at 10:30 a.m. EDT, and analysts expect the data to show declines in both crude and refined product reserves.
