Oil prices climb as Iran refuses to yield enriched nuclear stockpile

Crude oil prices climbed roughly one percent on Wednesday, rebounding from two-month lows following hardline comments from Tehran regarding its nuclear stockpile.

The market reaction came after an Iranian security official stated that the government would not permit any enriched nuclear material to exit the nation. The stance poses an obstacle to potential diplomatic progress, as Washington has maintained that nuclear issues must be addressed early in discussions aimed at concluding the conflict involving the United States, Israel, and Iran.

International benchmark Brent crude gained $1.28, or 1.4 percent, trading at $92.77 per barrel during morning European trade. Meanwhile, U.S. West Texas Intermediate rose 76 cents, or 0.9 percent, reaching $86.80 a barrel. The rebound followed a volatile prior day in which crude initially slumped over $3 before trimming losses when Iranian officials rejected claims that talks were underway.

Ongoing security risks across Middle Eastern waterways continue to underpin the market. Commercial navigation through the vital Strait of Hormuz remains precarious. Figures compiled by the Washington Institute for Near East Policy showed that 37 vessels faced strikes during October, representing the heaviest monthly toll since hostilities began. Recent incidents include an assault on a tanker northeast of Oman reported by the United Kingdom Maritime Trade Operations, alongside statements from Iran's naval forces claiming two vessels caught fire after striking mines in the channel.

Market specialists pointed out that restoring normal maritime traffic will require substantial time and resources even if hostilities cease. Analysts noted that clearing sea mines, securing insurance, and convincing commercial operators to transit the route would still take significant coordination.

Separately, geopolitical tensions impacted supplies elsewhere. A drone strike ignited a blaze at the Baltic port of Ust-Luga in Russia, leaving three personnel hurt, according to regional authorities. Industry estimates indicate that repeated drone strikes have idled roughly 30 percent of Russian refining capacity since late October, even as delegates from Moscow and Kyiv convened in Abu Dhabi for their first peace discussions in months.

Limiting crude's upside was an expansion in domestic stockpiles within the United States. Industry data from the American Petroleum Institute indicated that U.S. crude inventories expanded by 9 million barrels during the past week, ahead of government figures.