WTI up 5.5% in September amid US-Iran stalemate

West Texas Intermediate crude oil traded above $90 on Wednesday, recovering part of the previous day’s losses and saw a monthly gain of around 5.5%. The lack of progress in US-Iran talks to reopen the Strait of Hormuz keeps geopolitical risks elevated, even as Middle East supply conditions improve.

The US benchmark WTI fell over 4% on Tuesday, slipping to its lowest level since early September, as easing supply concerns weighed on prices.

Reuters reported that Saudi Arabia resumed tanker loadings at Yanbu after restarting its East-West pipeline, which provides an alternative route around Hormuz. Goldman Sachs estimated that Gulf crude exports recovered to around 23.3 mln barrels per day last week, broadly matching their 2025 average. The US also announced that it would offer up to 40 mln barrels from its Strategic Petroleum Reserve.

Meanwhile, data released by the US Energy Information Administration (EIA) on Wednesday showed that crude inventories increased by 922,000 barrels last week. The reading was above market expectations for a decline of around 300,000 barrels, but considerably smaller than the previous week’s 2.969 mln-barrel build.

On the Middle East front, Iran confirmed that it had received Washington’s response to Tehran’s seven-day proposal aimed at reopening the Strait of Hormuz.

The initial plan was rejected by US President Donald Trump, while Tehran has signalled that it will not soften its demands, which include lifting the naval blockade of Iranian ports and releasing frozen Iranian assets.

Iranian Foreign Minister Abbas Araqchi is expected to review Washington’s response with officials in Tehran.

A deal between Washington and Tehran could remove some of the geopolitical premium from oil prices. In contrast, a prolonged stalemate could support further gains in WTI.

(Source: OANDA)

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