Brent crude rises 2% to $105.11 amid US-Iran diplomacy stalling at UN General Assembly
Oil prices climbed for a second consecutive session as diplomatic efforts between Washington and Tehran showed little sign of a breakthrough, keeping the Strait of Hormuz risk premium firmly intact.
Brent crude jumped roughly 2% to approximately $105.11 per barrel on September 24, extending a rally that has pushed oil prices well above the $100 threshold. The catalyst, or rather the lack of one: US-Iran diplomatic talks in New York produced no meaningful progress, leaving traders to price in the continued reality of a closed Strait of Hormuz.
The move followed an even sharper 3.86% surge the prior session, when Brent settled at $103.08. Two days of gains have effectively erased the optimism that briefly pulled prices below $100 when reports surfaced of productive indirect negotiations between Washington and Tehran.
What killed the optimism
On September 22, indirect US-Iran talks mediated by Qatar took place on the sidelines of the UN General Assembly. President Trump described the discussions as “very good,” and crude prices briefly softened below the $100 mark as markets priced in a potential de-escalation.
Iranian President Masoud Pezeshkian took the General Assembly podium on September 23 and delivered an uncompromising address. He emphasized that Iran would “never surrender” to US pressure, while still leaving a narrow rhetorical door open for continued diplomacy. Markets interpreted the speech as a signal that any deal remains far off, and the risk premium on crude snapped right back.
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The Strait of Hormuz problem
Iran has kept the Strait of Hormuz closed, conditioning its reopening on the lifting of the US naval blockade and associated sanctions. Roughly a fifth of the world’s oil passes through that 21-mile-wide channel under normal circumstances, so its closure is not a theoretical risk scenario. It is an active supply disruption.
The US-Iran conflict began in February 2026 following US and Israeli military operations.
Supply side complications
US crude inventories rose by 3 million barrels to 426.4 million as of the latest data. Markets are also digesting reports of possible new US restrictions on diesel exports, which could reshape domestic supply-demand dynamics and ripple through global diesel markets.