Oil Prices Fall as Iran Talks, U.S. Crude Stocks Rise
Oil prices edged lower Thursday after a roughly 4% rally in the previous session as traders weighed renewed U.S.-Iran diplomatic efforts, uncertainty over the Strait of Hormuz, possible U.S. diesel-export restrictions and a larger-than-expected build in American crude inventories.
By Carolina Curiel
Published September 24, 2026
What Readers Should Know
- Brent crude fell 94 cents, or 0.9%, to $102.13 per barrel.
- WTI declined 59 cents, or 0.7%, to $91.56 per barrel.
- Both benchmarks had risen about 4% in the previous session.
- Iran says diplomacy remains possible, although significant differences with the United States remain.
- Reopening the Strait of Hormuz and lifting the U.S. naval blockade on Iranian ports were discussed during indirect talks.
- U.S. commercial crude inventories unexpectedly increased by about 3 million barrels to 426.4 million barrels.
- Reports of possible U.S. diesel-export restrictions added another source of market uncertainty, although no 90-day ban had been confirmed.
MONTREAL (Oil Monster): Oil prices edged lower Thursday after climbing approximately 4% in the previous session as investors assessed renewed diplomatic efforts to end the U.S.-Iran war alongside persistent uncertainty over Middle Eastern energy flows.
Brent crude futures fell 94 cents, or 0.9%, to $102.13 per barrel, while U.S. West Texas Intermediate crude declined 59 cents, or 0.7%, to $91.56.
Iran Signals Openness to Diplomacy, but Differences Remain
A senior Iranian official told Reuters that Iran and the United States remained far apart on how to end the conflict but that diplomatic engagement should continue.
The comments followed Iranian President Masoud Pezeshkian’s address to the United Nations General Assembly, where he said Tehran would not surrender to U.S. pressure while maintaining that Iran remained open to diplomacy.
According to the Iranian official, Tehran was reviewing Washington’s response to its peace proposals.
The proposals prioritize lifting the U.S. naval blockade on Iranian ports and reopening the Strait of Hormuz.
Hormuz Reopening Discussed in Indirect Talks
The possible reopening of the Strait of Hormuz and removal of the U.S. naval blockade were discussed during indirect U.S.-Iran talks on Tuesday, according to the Iranian official cited by Reuters.
However, Iran’s security chief Mohsen Rezaei said Wednesday that the Strait of Hormuz would not reopen unless Tehran’s conditions were met.
U.S. Secretary of State Marco Rubio said reaching an agreement would require substantial work over time and noted that military options remained available to President Donald Trump.
The statements underline the continuing gap between the two sides despite renewed diplomatic activity.
ALSO READ:
Oil Hits Over One-Week Low on Hopes of Iran Diplomacy
Diesel Export Policy Adds Another Market Variable
Oil and refined-product traders were also monitoring uncertainty over possible U.S. restrictions on diesel exports.
Ultra-low-sulfur diesel futures fell about 5% in midday trading after Politico reported that the Trump administration was preparing plans for a 90-day diesel export ban.
The White House denied that report.
Bloomberg subsequently reported, citing sources, that U.S. Energy Secretary Chris Wright had told oil-industry executives to prepare for the possibility of restrictions on diesel exports.
Wright had said earlier Wednesday that an outright diesel-export ban would not work, even though President Trump had expressed support for such a measure.
Analysts and market participants cited by Reuters warned that restricting U.S. diesel exports could have limited effect on domestic fuel prices while tightening supplies in international markets.
U.S. Crude Stocks Rise Instead of Falling
U.S. inventory data added another factor weighing on the market.
The Energy Information Administration reported that commercial crude inventories increased by approximately 3 million barrels during the week ended September 18 to 426.4 million barrels.
Analysts surveyed by Reuters had expected inventories to decline by approximately 641,000 barrels.
The difference between the expected draw and actual build amounts to approximately 3.61 million barrels.
Fuel inventories declined during the week.
Oil Market Balances Diplomacy Against Continuing Supply Risk
Thursday’s decline followed a sharp rally in the previous session, showing how quickly crude prices continue to respond to developments surrounding the war, the Strait of Hormuz and Middle Eastern export capacity.
Diplomatic engagement has raised the possibility of an eventual easing in supply disruptions, but there is no confirmed agreement to end the conflict or reopen Hormuz.
At the same time, the larger-than-expected U.S. crude inventory build and uncertainty surrounding U.S. diesel-export policy are giving traders additional domestic supply signals to assess.
Oil Market Update: Quick Questions
Has the Strait of Hormuz reopened?
No. Reopening the strait has been discussed in indirect talks, but Iranian officials say conditions must still be met.
Has the United States imposed a 90-day diesel export ban?
No confirmed 90-day ban had been announced at the time of this report. The White House denied a Politico report describing such a plan, although separate reporting said possible export restrictions were still being discussed.
How much did U.S. crude inventories increase?
EIA data show commercial crude inventories rose by approximately 2.97 million barrels to 426.4 million barrels in the week ended September 18.
What had analysts expected?
The Reuters survey expected a 641,000-barrel decline, creating a roughly 3.61 million-barrel difference between the forecast and actual inventory movement.
Explore More on OilMonster
Saudi Arabia Restarts East-West Oil Pipeline
Courtesy: www.reuters.com