Oil Prices Climb as U.S. Official Says Iran Unwilling to Negotiate
Brent crude rose about 2.5% after the U.S. Secretary of State said Iran was not serious about a diplomatic deal, while U.S. forces continued nightly strikes in the region.
Oil prices increased on Wednesday after U.S. Secretary of State Marco Rubio stated that Iran was not serious about reaching a deal to end the fighting and affirmed that the U.S. military would keep protecting shipping through the Strait of Hormuz. Brent crude futures rose roughly 2.5% to $93.32 per barrel, while U.S. West Texas Intermediate futures gained about 2.3% to $86.31.
Speaking at the ASEAN Foreign Ministers' meeting in the Philippines, Rubio said Washington remained open to a diplomatic settlement but accused Tehran of violating a memorandum of understanding within two weeks. > "The U.S. would love to reach a diplomatic settlement, we'd love to reach an agreement if it were possible with Iran," he said, adding that Iran "doesn't seem to be serious" about a deal.
Rubio also urged other nations to join the U.S. in protecting shipping in the strategic waterway, warning that Iran's demand to control the strait could set a dangerous precedent. The U.S. military conducted its eleventh consecutive night of strikes targeting Iranian military facilities, according to U.S. Central Command.
President Donald Trump previously said Iran wanted to resume talks but that the United States would not engage until Tehran showed meaningful willingness. Analysts at ING noted that supply risks are rising as hopes for a temporary cease-fire fade, and cited additional disruptions from attacks on tankers in the Black Sea affecting Russian oil terminals.