Oil up 2% as traders assess Iran's remarks

HOUSTON:

Oil prices were up almost 2% a barrel on Wednesday in choppy trade, as traders evaluated Iranian President Masoud Pezeshkian's vow never to surrender, a day after US President Donald Trump warned he could "annihilate" Iran.

Brent crude futures rose $1.84, or 1.85%, to $101.09 a barrel by 11:11 am EDT while West Texas Intermediate futures gained 69 cents, or 0.76%, to $91.21.

At the UN General Assembly in New York, Pezeshkian said in a speech on Wednesday that Tehran would never surrender to the US but still believes in diplomacy. On Tuesday, Trump used a speech at the same forum to make his threat.

Tehran was reviewing the US response to its proposal to end hostilities, though many differences remain, a senior Iranian official told Reuters. A reopening of the Strait of Hormuz and lifting of Washington's naval blockade on Iran were discussed during indirect talks on Tuesday, the official said.

Meanwhile, European low-sulphur gasoil's premium to Brent crude futures hit a record of about $95 a barrel after Trump said he backed the idea of a diesel export ban to lower prices that have hit record highs owing to a global supply shortage.

US Energy Secretary Chris Wright said later that a diesel export ban would not work. Analysts and market watchers have warned that such a move would do little to ease high energy prices and could worsen global supplies and further disrupt economies