Crude Oil Prices Rise After Iranian President Vows No Surrender to U.S.
Quick Look
Crude oil prices rose Wednesday after five days of losses, with Brent crude up 3.9% to $103.08 and WTI up 1.8% to $92.16, following Iranian President Masoud Pezeshkian's vow at the U.N. that Iran will not surrender to U.S. pressure, amid reports of potential Strait of Hormuz reopening and mixed signals from U.S.-Iran talks.
AI-generated summary
Why It Matters
Oil prices had fallen for five consecutive sessions, dropping nearly 12% and retreating from the $100 'intervention zone' where peace-building efforts have previously intensified. U.S.-Iran talks were described as 'very good' by Trump, though he also threatened to 'annihilate' Iran if no deal is reached.
Crude oil prices rose Wednesday, ending five consecutive days of losses after Iranian President Masoud Pezeshkian vowed the Islamic Republic will not surrender to the U.S.
Brent crude , the international benchmark, rose 3.9% to close at $103.08 per barrel. U.S. West Texas Intermediate advanced 1.8% to settle at $92.16.
"They have tested the strength and the steadfastness of Iran and they have learned that Iran cannot be made to surrender," Pezeshkian said in his address to the U.N. General Assembly on Wednesday.
U.S. crude oil prices are down 8% on the week while Brent has lost nearly 1%. President Donald Trump said Tuesday that U.S. officials had a "very good meeting" with Iran's delegation and that it lasted about three hours.
Earlier in his address to the U.N., Trump said he has a "big decision" over whether to reach a deal with Tehran or "annihilate" the country.
Reuters reported on Tuesday that Iran could reopen the Strait of Hormuz within a week if the U.S. agrees to ease military pressure and lift its blockade of Iranian ports.
"Pakistan's mediation efforts with Tehran could also reduce the risk of a broader escalation," said Paolo Broccardo, chief executive officer at private digital bank BankPro.
Oil prices are also unlikely to see a huge jump for now, he said.
"Over the past five consecutive sessions, the price has fallen by almost 12%, retreating once again from the 'intervention zone' above $100, where we have repeatedly seen intensified peace-building efforts from both sides," Broccardo said.
What to Watch
AI outlook — possibilities, not facts
The Strait of Hormuz could reopen within a week if the U.S. agrees to ease military pressure and lift its blockade of Iranian ports.
Possible · Within days
Pakistan's mediation efforts with Tehran could reduce the risk of a broader escalation.
Possible · Within weeks
Open Questions
- Will the U.S. agree to ease military pressure and lift its blockade of Iranian ports?
- Can Pakistan's mediation successfully reduce the risk of broader escalation?
- What specific terms are being discussed in the U.S.-Iran negotiations?
- How long might any potential Strait of Hormuz reopening last?
