Oil prices spiked 1.5% to $106.86 a barrel for Brent, up $1.58, as traders weighed the threat of a US‑Iran flare‑up. WTI followed suit, trading at $93.86, a $1.26 gain.
Brent futures were up 63 cents, or 0.6%, at $105.91 by 7:30 AM IST, while U.S. West Texas Intermediate futures rose 72 cents, or 0.8%, to $93.32.
Kpler’s preliminary data shows crude exports from major Middle‑Eastern producers hit 12.8 million barrels per day in September – the highest level since February – driven largely by Saudi and UAE shipments.
Yet the export uptick does little to allay fears that a strike on the Strait of Hormuz could choke the global supply chain. U.S. and Iranian officials have reopened talks, but the U.N.‑backed seven‑day proposal on the sidelines of the General Assembly remains contentious.
Energy sector stocks nudged higher, with the S&P 500 Energy Index posting a modest gain as investors balanced the lift in crude prices against geopolitical risk.
Analysts will watch tomorrow’s U.S.‑Iran dialogue for cues on whether tensions ease. Meanwhile, the U.S. is evaluating a regulatory carve‑out that could lift diesel sales, potentially easing fuel‑price pressure for the remainder of the year.