US-Iran talks ease oil prices, but shipping costs squeeze Asian refiners

Global crude oil prices eased as increased flows through the Strait of Hormuz and hopes for US-Iran diplomacy reduced supply concerns, though shipping costs have surged to 20-25 percent of contract value for Asian refiners. The White House signaled a diplomatic route with a planned US-Iranian presidential meeting, while crude sank to a 1.5-week low. However, acute supertanker shortages, driven by sanctions on dark fleets and years of underinvestment, have pushed Middle East-to-Asia charter rates above $1.2 million daily, adding $26 per barrel for US shipments. Product shortages persist, with US diesel reaching $6.4-7 per gallon and Europe facing a fourth-quarter jet fuel deficit of 510,000 barrels daily. Analysts expect Brent to test $95 support, but prolonged standoff could push prices toward $110-115 by October end.