Luckin Coffee weighs Middle East expansion following $1B Mubadala-backed deal

Oil prices climbed on September 29 as Middle East tensions fueled by the U.S.-Iran conflict kept traders nervous, despite indications that regional exports may be picking up, according to Reuters on September 29. Brent crude futures surged $1.49, or 1.4%, to $106.77 per barrel, while U.S. West Texas Intermediate crude gained $1.34, or 1.5%, to $93.94 per barrel.

Both prices had jumped by nearly $1 a barrel the previous day. Tim Waterer, chief market analyst at KCM Trade, noted that while Gulf countries' oil exports were rising, many were still being moved via makeshift methods like ship-to-ship transfers, which are less efficient and more expensive, thus keeping oil prices high. September's oil exports from major Middle Eastern producers reached 12.8 million barrels per day, the highest level since February, fueled by increased shipments from Saudi Arabia and the United Arab Emirates.

U.S. and Iranian negotiators met with mediators separately as attempts to end the seven-month war persisted, with further discussions expected to focus on a revised seven-day proposal Iran brought to the U.N. General Assembly. The main concern remains the U.S.-Iran conflict and its impact on energy prices and inflation expectations, as UOB analysts said in a note to clients.

Iranian officials reportedly remain skeptical about reaching an agreement before the situation at the Strait of Hormuz escalates further, adding to uncertainty over oil supplies. Meanwhile, the U.S. is contemplating relaxing regulations to permit wider sales of red-dyed diesel to help lower prices, Reuters reported, citing sources.

The idea surfaced after several days of talks and is being considered as a possible alternative to a ban on diesel exports. On July 22, 2026, President Donald Trump declared that the U.S. would destroy a bridge or power plant each time Iran attacked a ship in the Strait of Hormuz. On July 23, U.S. forces launched their 12th consecutive night of strikes on Iran, which drove oil prices up to their highest level in over six weeks.

U.S.-Iran negotiations impacted oil prices on July 28. Prices fell on July 30 despite increased Middle East tensions. A Trump statement sent oil prices sharply lower on August 3. Oil prices rose again on August 10 due to uncertainty over the Strait of Hormuz reopening. Tensions between the U.S. and Iran continued to push oil prices higher on August 17.

Oil prices dipped on August 21 as the ongoing U.S.-Iran conflict kept supplies in the Gulf region disrupted. Oil prices edged lower on August 27 as talks between Iran and Oman appeared to be helping reopen the Strait of Hormuz. Brent crude briefly surpassed $100 a barrel on September 10 following attacks near the Strait of Hormuz.

Oil prices ticked up on September 28 amid delays in U.S.-Iran ceasefire talks following Trump's rejection of a proposed peace agreement.