Oil settles up around 4% as Iran’s president vows to never surrender
Both oil benchmarks closed higher for the day
Oil prices climbed around 4% on Wednesday (Sep 23) after Iran's President Masoud Pezeshkian vowed to never surrender to the US. Brent crude futures climbed US$3.83, or 3.86%, to reach US$103.08 a barrel, while West Texas Intermediate futures rose US$1.64, or 1.81%, to US$92.16. Ultra-low-sulfur diesel futures faced a 5% drop following reports of a potential 90-day diesel ban by the US administration, which the White House later denied.
Iranian President Pezeshkian reiterated Teheran's refusal to yield to the US during his speech at the UN General Assembly in New York, while also emphasizing the country's commitment to diplomacy. Meanwhile, US crude inventories saw a rise of 3 million barrels to 426.4 million barrels in the week ended Sep 18, exceeding expectations, while fuel stocks declined.
Saudi Arabia resumed operations on its East-West Pipeline to the Red Sea on Tuesday, but earlier drone attacks by Iraqi militia forced the kingdom to halt crude loadings at Yanbu port. Iran's security chief Mohsen Rezaei stated that the Strait of Hormuz would not reopen until Iran's conditions are met. The possibility of a ceasefire involving grain and energy-related targets has been discussed by Ukraine and Russia after a meeting between US Secretary of State Marco Rubio and Russian Foreign Minister Sergei Lavrov in New York.
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