Oil rises as U.S. shuts Iranian airlines, escalating Iran-U.S. tensions

Oil prices rose Tuesday after U.S. Treasury Secretary Scott Bessent announced all Iranian airlines will be shut down from Wednesday, escalating Iran-U.S. tensions. Brent crude gained 1.2% to $101.54 a barrel, while West Texas Intermediate advanced 0.77% to $96.55. Bessent warned that any entity providing fuel, landing services, or tickets to Iranian airlines would be cut off from the dollar system. Investors are also monitoring potential diplomatic moves, as Iranian President Masoud Pezeshkian is set to attend the United Nations in New York. Pezeshkian will address the assembly and hold talks with several leaders from September 22 to 28, focusing on Iran's conflicts with the U.S. and Israel. Analysts note direct Washington-Tehran talks could pressure prices lower, while Tehran has warned renewed escalation would trigger a significant response.