Oil prices fluctuated early in the week due to geopolitical tensions involving Iran, while U.S. gasoline and diesel hit record highs from refining constraints and conflicts. Meanwhile, energy infrastructure faced major developments, including Texas halting data center power permits and Kairos Power securing funding for a nuclear reactor.
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Oil Prices Decline as Traders Weigh Prospects of Iran Diplomacy
prices fell to their lowest level in over a week on Monday as traders priced in potential diplomatic breakthroughs regarding the conflict in the Middle East. traded at $101.71 a , down $2.16 or 2.08 percent, while fell $2.15 to $98.15 a barrel, breaching the psychological $100 threshold. Market participants pointed to an upcoming United Nations meeting as a catalyst for possible de-escalation, despite Washington and Tehran exchanging fresh threats over the weekend. Meanwhile, Saudi Arabia increased its oil exports through the Strait of Hormuz to 2.9 million barrels daily over the past week, recovering from 700,000 barrels daily in August after Houthi attacks disrupted shipments via the East-West pipeline. Total oil flows averaged 17.1 million bpd over the preceding ten days, mitigating supply concerns stemming from regional escalations.
Crude Oil Benchmarks ($ per barrel)
Brent traded at a premium over West Texas Intermediate.
Oil Rises Amid Iran-US Tensions Following Airline Shutdown Warning
cnbc.com reports that oil rose Tuesday amid concerns of growing Iran-U.S. tensions after U.S. Secretary Scott Bessent warned that all Iranian airlines will be shut down from Wednesday. for November delivery gained 1.2% to settle at $101.54 a , while U.S. futures for October advanced 0.77% to reach $96.55 per barrel. Bessent stated on CNBC that entities providing fuel or landing services to Iranian planes would be knocked out of the dollar system. Investors are watching for potential diplomatic solutions as Iranian President Masoud Pezeshkian prepares to address the United Nations in New York. Pezeshkian is scheduled to hold talks with leaders of several countries on the sidelines from September 22 to 26 and on September 28.
Qatar Rejects Strait of Hormuz Bypass Pipeline and Restructures Sovereign Wealth Strategy
Euronews.com reports that Qatar has rejected proposals to build pipelines bypassing the Strait of Hormuz, citing the prohibitive cost of duplicating facilities. Saad Sherida Al-Kaabi, chief executive of Qatar Energy, stated that routing through neighbouring territories would require constructing new liquefaction plants equivalent to those already underway in the North Field expansion. That expansion aims to lift LNG production capacity from 77 million tonnes per year to 142 million tonnes by 2030. The first production unit at the North Field East project is now slated to start in the first half of 2027, delayed from 2026. Meanwhile, attacks on Ras Laffan in March damaged two LNG production units and cut export capacity by roughly 17 percent, with repairs projected to take three years. The disruption pushed Qatar's gross domestic product down 7 percent year on year in the first quarter of 2026. To counteract economic pressures, Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani announced more than $60 billion in infrastructure and private investment projects over the next five years at a special edition of the Qatar Economic Forum in New York. The state also launched Doha Investment, a new platform managed by Commerce Minister Sheikh Faisal bin Thani Al Thani to oversee 45 domestic companies comprising roughly one-third of the Qatar Investment Authority's .
Kairos Power Secures $100 Million Samsung Investment for Nuclear Reactor Supporting Google
Kairos Power secured up to $100 million in investment and in-kind engineering services from Samsung C&T to build a 50 megawatt demonstration reactor for Google. TechCrunch reports that the package includes a $70 million equity investment from the engineering firm, which has previously built about a dozen nuclear reactors globally. The project is part of a broader agreement signed in fall 2024, in which Google tapped Kairos to generate about half a gigawatt of electricity by 2035. Kairos is currently constructing two reactors in Oak Ridge, Tennessee, following its receipt of Nuclear Regulatory Commission construction approval in November 2024. The first facility, Hermes 1, is a low-power demonstrator designed to refine commercial layouts, while Hermes 2 serves as the first commercial-scale unit and will provide the initial 50 megawatts for the Google contract. Hermes 2 is scheduled to begin operating by 2030. The reactor utilizes a fluoride salt-cooled high-temperature design and TRISO fuel, an arrangement designed to keep pressure levels low and prevent meltdowns.
Texas Gov. Abbott Halts Data Center Permits Pending Grid Audit
Texas Governor Greg Abbott ordered the state environmental regulator on Monday to halt all -related permits until the Electric Reliability Council of Texas completes an audit of the existing connection waitlist. The directive expands an August moratorium from the governor's office, which had initially frozen new grid approvals for energy-hungry facilities but left environmental reviews open through the Texas Commission on Environmental Quality. Regulators estimate that the audit examining data center power use, tax incentives, end users, and water consumption could last until late next year. The commission is expected to provide an update on its compliance with the governor's office by October 19. Texas was previously on track to surpass Virginia as the world's largest data center market by the end of the decade, following a boom driven by sales tax exemptions and projects like OpenAI's Stargate. Governor Abbott also stated that he will work with the Legislature in the next session to eliminate financial incentives for data centers.
cbsnews.com reports that U.S. gasoline and diesel prices hit record highs as ongoing geopolitical conflicts restrict global oil supplies and refining capacity. The national average for gasoline rose 7 cents overnight to $4.44 a gallon, marking an increase of nearly 50 percent since the Iran war began in February. Diesel prices climbed to a record $6.40 a gallon, driven higher by production outages and attacks on critical infrastructure including Saudi Arabia's East-West pipeline. The pipeline disruption cut 4 million barrels per day from the global market, according to Eurasia Group. Ukrainian drone strikes further removed 3 million barrels of refining capacity from Russia, compounding supply deficits. Regional markets face steeper costs, with diesel in California averaging $8.35 a gallon and gasoline in Illinois reaching $4.78 a gallon. Elevated fuel expenses threaten to accelerate across consumer goods, commercial transport, and home heating oil.
Anson Resources Signs Lithium Offtake and Financing MoU With Wogen and Xcelsior
Anson Resources signed a non-binding memorandum of understanding with Wogen Resources America and Xcelsior Advisors to evaluate a long-term offtake and financing arrangement for the Green River Lithium Project in Utah. Under the agreement announced on 21 September, Anson would supply Wogen with an indicative initial volume of 2,000 to 6,000 metric tonnes per annum of lithium carbonate equivalent. The proposed initial term spans five years from the commencement of deliveries, with supply anticipated to begin around 2029 or 2030. Xcelsior and Wogen will jointly evaluate investment and financing including , product prepayment, and strategic investment to support the project's development. The preliminary work program involves technical exchanges, product testing, and logistics assessments ahead of definitive agreements. The collaboration reflects a growing reliance on combined trader and financing partnerships to navigate capital requirements during the current lithium market downturn while leveraging domestic U.S. incentives.
Soaring fuel costs and nuclear deals contrast with regulatory halts on data center power access. Whether Texas grid audits and Iranian diplomacy will stabilize supply chains or further constrain energy capacity is unresolved.
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