Oil prices rise as Trump rules out easing Iran sanctions

Oil prices moved higher on Wednesday after US President Donald Trump rejected reports that Washington was prepared to ease sanctions on Iran, keeping geopolitical uncertainty in focus as Qatar continued diplomatic efforts between the two countries.

Brent crude for the November contract, which expires on Wednesday, gained 71 cents, or 0.69%, to reach $103.30 per barrel. The more actively traded December Brent contract rose 35 cents to $96.51.

US West Texas Intermediate (WTI) crude also increased, gaining 43 cents, or 0.48%, to $89.81 per barrel.

Brent is on course for a monthly increase of around 14%, which would mark its strongest monthly rise since July. WTI is heading for a monthly gain of about 4% after briefly crossing $106 per barrel earlier in the month.

Market sentiment remains closely tied to developments involving Iran and the broader Middle East. Qatar has said it hopes its diplomatic efforts between Tehran and Washington can produce progress, but Trump denied a report suggesting he was prepared to provide sanctions relief and release frozen Iranian funds in exchange for steps by Iran regarding its nuclear programme.

Analysts said uncertainty surrounding possible sanctions relief and negotiations was continuing to support a geopolitical premium in oil prices. At the same time, the recovery in regional supplies could limit further gains unless tensions escalate or fresh disruptions occur.

Saudi Arabia has also resumed oil tanker loadings from its Red Sea port of Yanbu after restoring operations on the East-West Pipeline.

Middle Eastern oil exports recovered to around 16.328 million barrels per day in September, their highest level since the US-Israeli conflict with Iran began in late February.