Oil Prices Jump 3% After Report Says US Rejects Change to Iran Talks Location

Oil prices surged about 3% on Wednesday, extending gains from the previous session, after a report said the United States has rejected Iran’s request to change the location and format of upcoming talks, adding to geopolitical tensions in the Middle East.

Brent crude futures climbed $2, or 3%, to settle at $69.33 a barrel, while U.S. West Texas Intermediate (WTI) rose $1.93, or 3.05%, to $65.14 a barrel.

Latest Oil Prices:

WTI Crude • 65.14 +1.93 +3.05%

Brent Crude • 68.69 +1.36 +2.02%

Murban Crude • 69.47 +1.19 +1.74%

Natural Gas • 3.465 +0.154 +4.65%

Louisiana Light • 62.95 -1.03 -1.61%

Bonny Light • 78.62 -2.30 -2.84%

Mars US • 69.79 -0.88 -1.25%

Gasoline • 1.965 +0.067 +3.55%

The rally followed reports that Washington would not agree to moving the scheduled talks with Tehran from Turkey to Oman, nor limit discussions solely to nuclear issues. The negotiations are due to take place on Friday.

Oil markets were further supported by a series of security incidents involving Iran. The U.S. military said it shot down an Iranian drone that approached the aircraft carrier USS Abraham Lincoln in an “aggressive manner” in the Arabian Sea.

Separately, maritime sources and a security consultancy reported that a group of Iranian military speedboats approached a U.S.-flagged oil tanker in the Strait of Hormuz, a critical chokepoint for global energy supplies.

“Escalating tensions in the Middle East have provided additional support to oil markets,” said Satoru Yoshida, a commodities analyst at Rakuten Securities.

Several members of the Organization of the Petroleum Exporting Countries (OPEC), including Saudi Arabia, Iran, the United Arab Emirates, Kuwait, and Iraq, ship the majority of their crude exports through the Strait of Hormuz, particularly to Asian markets. According to the U.S. Energy Information Administration (EIA), Iran was OPEC’s third-largest crude oil producer in 2025.

Oil prices also gained support from data pointing to a sharp decline in U.S. crude inventories. Sources citing figures from the American Petroleum Institute (API) said stocks in the world’s largest oil producer and consumer fell by more than 11 million barrels last week.

Official inventory data from the EIA are due later on Wednesday, although analysts surveyed by Reuters expect a rise in crude stockpiles.

Oil had already posted gains in the previous session after a U.S.–India trade agreement boosted hopes for stronger global energy demand. At the same time, continued Russian attacks on Ukraine have fueled concerns that sanctions on Russian oil exports could remain in place for longer than anticipated.