Oil prices rose again on Thursday, Sept. 24, extending Wednesday's rebound as hopes for a near-term breakthrough in US-Iran negotiations faded. Brent futures rose above $107/bbl, while US West Texas Intermediate (WTI) climbed to $96.50/bbl. The gains erased the week's earlier weakness, which came as signs of improving Middle East supply pushed prices lower.

Iran and the US remain divided over terms for ending the conflict. Tehran is prioritizing an end to the US naval blockade on Iranian ports and the reopening of the Strait of Hormuz. A senior Iranian official said that both issues were discussed in indirect talks on Tuesday, but there was little sign of an imminent agreement.

Rhetoric hardened at the UN General Assembly. US President Donald Trump used his address on Tuesday to threaten to "annihilate" Iran if no deal is reached. Iranian President Masoud Pezeshkian responded on Wednesday, saying Iran would not surrender to US pressure and calling Trump's remarks a sign of a "bullying mentality." He also said Tehran remained open to negotiations, though not under what he called the language of force.

Tehran has also signaled that a negotiated reopening of Hormuz remains possible. A senior Iranian official said the strait could reopen within 7 days if Washington takes steps toward lifting the blockade. That keeps diplomacy relevant for oil prices, but the public positions of the two governments have shifted little.

The result is a market still carrying a sizable geopolitical premium in Brent. Traders are weighing the possibility of an eventual diplomatic settlement against the risk that restricted Hormuz traffic and broader regional hostilities persist for longer than expected.

Saudi Arabia, meanwhile, restarted its East-West Pipeline this week after a Sept. 11 drone attack forced it offline. The line moves crude to the Red Sea port of Yanbu, bypassing Hormuz. It has capacity of about 7 million b/d, though full restoration is expected to take 6-8 weeks. Before the shutdown it was carrying around 4 million b/d, roughly 4% of global oil supply. The restart briefly pushed Brent below $100/bbl earlier this week as traders reassessed the scale of the physical disruption.