Oil prices reversed earlier losses on Wednesday, with Brent crude climbing more than 3% as traders reassessed the outlook for U.S.-Iran diplomacy and Middle East supply risks.
Reuters reported that Brent rallied after five consecutive sessions of declines. Earlier in the day, crude had traded near its lowest levels in more than two weeks as improving Gulf supply and hopes for diplomatic progress weighed on prices.
Iranian President Masoud Pezeshkian told the UN General Assembly that Iran would not surrender to the United States but still believed in diplomacy. His remarks followed a hardline threat from U.S. President Donald Trump a day earlier, while mediated contacts between the two sides continued.
The rebound does not establish that diplomacy has failed or that a new escalation is certain. It reflects an immediate market repricing of political uncertainty and supply risk. Diesel refining margins also remain elevated, underscoring continued tightness in parts of the refined-fuel market.