Oil prices fall as Iran says it is open to diplomacy to end the war

Oil prices eased on Thursday, giving back part of the previous session's 4 per cent gain, after Tehran signalled it was still willing to hold talks aimed at ending its conflict with Washington. Brent crude futures slipped by 92 cents, a 0.9 per cent decline, to $102.16 a barrel by 0900 PKT, while West Texas Intermediate fell 77 cents to $91.39.

Reuters quoted a senior Iranian official saying the two sides remain split on ending the conflict, though talks must go on. The official said Iran is examining Washington's reply to its proposals for a settlement, which seek an end to a naval blockade on Iranian ports and a reopening of the Strait of Hormuz. Iran's security chief Mohsen Rezaei said earlier that the strait stays shut until Tehran's conditions are met.

Phillip Nova's Priyanka Sachdeva linked the decline to traders stripping out some of the political risk built into crude, as Gulf supply returns and hopes for a US-Iran breakthrough rise. She said Brent still carries a larger premium than WTI because international crude faces more direct exposure to Middle East disruption. Separately, ultra-low-sulfur diesel futures dropped about 5 per cent at midday after Politico reported a possible 90-day diesel ban, which the White House denied.