Oil climbs after Trump denies he is willing to ease sanctions on Iran

Crude benchmarks moved higher early on Wednesday, according to Business Recorder, with Brent climbing $1.14 (1.11%) to $103.73 per barrel at 0131 GMT. Prices had eased in the previous session after supply from the Middle East began to recover. The rise came as Donald Trump rejected a report that he was prepared to loosen sanctions on Iran.

Axios had cited US officials saying Trump was ready to grant sanctions relief and unfreeze Iranian funds in return for concrete nuclear steps by Tehran. Trump answered on Truth Social that the report was untrue and that he had offered Iran nothing. Qatar, which has been passing messages between the two sides, voiced hope that its diplomacy could bring a breakthrough.

Brent is on track for a September gain of roughly 14%, its largest monthly rise since July, while WTI is heading for about 4% growth and had earlier moved above $106, a level last breached in May. Traders are also watching a possible US curb on diesel exports that could create excess supply at home and lead refiners to run less crude. Trump is considering red-dyed diesel sales as an alternative to an export ban, intended to ease consumer prices before the November mid-term elections.