Oil prices fell on Thursday after rising by about 4% in the previous session, as Iran announced it remained open to a diplomatic path to end the war with America.
Brent crude futures fell 0.7% to $102.36 a barrel, while West Texas Intermediate crude futures also declined 0.7% to $91.49.
A senior Iranian official told Reuters on Wednesday that Iran and the United States remain far apart on how to end the war, but stressed the need to continue diplomatic efforts, after the Iranian president told the United Nations General Assembly that Tehran would not succumb to American pressure.
The official added that Tehran is studying the American response to its proposals to end the war, which focus on lifting the American naval blockade imposed on Iranian ports and reopening the Strait of Hormuz.
He explained that reopening the Strait of Hormuz and lifting the US naval blockade on Iran were among the topics discussed during indirect talks held on Tuesday.
Earlier on Wednesday, Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, said that the Strait of Hormuz would not be reopened unless Iran’s conditions were met.
US Secretary of State Marco Rubio told reporters on Wednesday that reaching an agreement with Iran would require hard work over a period of time, adding that President Donald Trump also had military options.
The decline in oil prices comes as traders assess potential restrictions on diesel exports.
Ultra-low sulfur diesel futures fell by about 5% during midday trading, after Politico reported that President Donald Trump's administration was preparing plans to impose a 90-day ban on diesel exports, before the White House denied it.
Analysts and market observers warned that banning diesel exports would do little to alleviate rising energy prices, but could exacerbate the global supply crisis and increase disruptions in economies.
Meanwhile, U.S. crude oil inventories rose by 3 million barrels to 426.4 million barrels last week, according to data from the U.S. Energy Information Administration.
Analysts polled by Reuters had expected inventories to fall by 641,000 barrels.
