Oil retreats as Iran signals diplomacy, but supply risks persist

September 24, 2026 at 11:34 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Oil prices fell on Thursday after a sharp rally, with Brent down 0.9% to $102.16 a barrel and WTI down 0.8% to $91.39. The market pared some of its geopolitical risk premium after Iran signaled openness to diplomatic resolution with the US. Supply risks remain elevated, particularly around the Strait of Hormuz.

Key Facts

Brent crude futures fell 92 cents, or 0.9%, to $102.16 a barrel on Thursday.
WTI crude futures fell 77 cents, or 0.8%, to $91.39 a barrel.
Both benchmarks had gained about 4% the previous day.
A senior Iranian official told Reuters that Tehran and Washington still differ significantly on conflict resolution but that the diplomatic process should continue.
US Secretary of State Marco Rubio said reaching an agreement with Iran would require lengthy and complex work, while President Donald Trump retains military options.

Price Action

Brent crude futures fell 92 cents, or 0.9%, to $102.16 a barrel on Thursday. WTI crude futures fell 77 cents, or 0.8%, to $91.39 a barrel. Both benchmarks had gained about 4% the previous day. Ultra-low sulfur diesel futures fell about 5% intraday after Politico reported a possible 90-day US diesel export ban, which the White House later denied.

Iran Diplomacy

A senior Iranian official told Reuters that Tehran and Washington still differ significantly on conflict resolution but that the diplomatic process should continue. Iran is studying the US response to its peace proposals, with key demands including lifting the naval blockade of Iranian ports and opening the Strait of Hormuz. Mohsen Rezai, secretary of Iran's Expediency Discernment Council, said the Strait of Hormuz would not be opened until Tehran's conditions are met. US Secretary of State Marco Rubio said reaching an agreement with Iran would require lengthy and complex work, while President Donald Trump retains military options.

Supply Risks

Priyanka Sachdeva, head of market analysis at Phillip Nova, said oil prices are falling as the market unwinds part of the geopolitical risk premium, with Gulf supplies recovering and hopes for a US-Iran diplomatic breakthrough rising. Sachdeva said Brent retains an elevated premium for geopolitical risks and possible disruptions to maritime routes, especially near the Strait of Hormuz. WTI, by contrast, is supported by the relative isolation of the US supply system. US Energy Secretary Chris Wright said a diesel export ban would not have the desired effect, and analysts warned such a measure could worsen global supply and pressure the economy.