Oil up 2% as traders assess Iran's remarks

Oil prices climbed almost 2% on Wednesday as traders weighed remarks by Iranian President Masoud Pezeshkian, who told the UN General Assembly in New York that Tehran refused to yield to Washington but still backed diplomacy. At 11:11 am EDT, Brent crude futures were $1.84 higher, up 1.85%, at $101.09 per barrel, while West Texas Intermediate gained 69 cents to $91.21.

The move came a day after US President Donald Trump warned at the same forum that he could annihilate Iran, though Pezeshkian also spoke of diplomacy. According to The Express Tribune, Reuters quoted a senior Iranian official as saying Tehran was studying Washington's answer to its plan to end hostilities, although major disagreements persist. Indirect talks on Tuesday also touched on reopening the Strait of Hormuz and lifting the US naval blockade of Iran.

Separately, the premium of European low-sulphur gasoil over Brent hit a record near $95 a barrel after Trump backed a diesel export ban aimed at lowering prices that have surged on a global supply shortage. US Energy Secretary Chris Wright later said such a ban would not work, while market watchers cautioned it would offer little relief and could strain supplies further.