Oil Prices Climb as Trump Denies Report on Easing Iran Sanctions

Oil prices advanced on Wednesday after former U.S. President Donald Trump refuted a report that he was considering easing sanctions on Iran, diminishing hopes for a return of Iranian crude to the global market. The news reversed earlier losses that were driven by signs of recovering supply in the Middle East.

By 0131 GMT, Brent crude futures had risen $1.14, or 1.11%, to $103.73 a barrel, according to Reuters data. U.S. West Texas Intermediate (WTI) crude gained 34 cents, or 0.38%, to $89.72 a barrel. The gains put Brent on track for a monthly increase of around 14%.

Sanctions Speculation Quashed

The primary driver for the price increase was a statement from Trump denying an Axios report that he was willing to offer sanctions relief in exchange for steps by Tehran on its nuclear program. "This is untrue. I offered them NOTHING," Trump wrote on his Truth Social platform.

The denial complicates ongoing diplomatic efforts. Qatar's Foreign Ministry spokesperson, Majed al-Ansari, had told reporters on Tuesday that his country was exchanging messages between the U.S. and Iran to "establish a common ground." Trump's firm stance suggests a diplomatic breakthrough that could release Iranian oil supply remains distant.

Shifting Supply Picture

Prices had previously softened on news of improving crude flows from the Middle East. Saudi Arabia resumed oil tanker loadings from its Red Sea port of Yanbu after restarting operations on its East-West Pipeline. This contributed to a rebound in regional exports.

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• Crude oil exports from Middle East producers in September reached 16.328 million barrels per day, the highest level since late February, according to the report.

"Further evidence of recovering flows through the Strait of Hormuz...has seen prices come off a little," said Saul Kavonic, head of energy research at MST Marquee, who also noted the situation "remains volatile."

U.S. Inventories Add Uncertainty

In the U.S. market, preliminary inventory data added a layer of complexity. According to market sources citing the American Petroleum Institute (API), U.S. crude stocks unexpectedly rose by 1.02 million barrels last week.

This build contrasts with analysts' expectations in a Reuters poll, which had forecast a drop in crude inventories. Investors are now awaiting official data from the U.S. Energy Information Administration (EIA), due at 10:30 a.m. EDT, for a clearer picture of domestic demand.