Brent jumped over 4% to above $108 and WTI neared $97 Thursday after Houthis claimed strikes on Saudi military targets. Prices fell on reports that US-Iran negotiators are pursuing a phased deal to reopen the Strait of Hormuz in exchange for relief from the US naval blockade.
The reported deal would have Iran reopen the Strait to shipping in exchange for US relief from its naval blockade, but the waterway remained largely blocked to consistent traffic. Houthi attacks had also disrupted Saudi oil exports through the Red Sea. At the UN, Iranian President Masoud Pezeshkian said Tehran would maintain its nuclear program and not yield to US pressure; Trump said he expected a deal after the US midterms.
Separately, the White House was reportedly preparing a 90-day diesel export ban. US gasoline prices averaged $4.85 Thursday, up 53% from a year earlier; diesel stood at $6.51, up 76%. Analysts and industry participants warned that refiners unable to export diesel might cut production, reducing gasoline supply and potentially adding to US price pressures. Less US diesel on world markets could also push prices higher in the UK, France and Germany.
