USO climbs 1.58% in pre-market trade after Iran denies progress on talks

USO rose to $163.15 a share before the US market opened, with falling crude inventories adding to the move.

Brent crude futures rose more than $2 in pre-market trading on Wednesday, touching $111.25 a barrel. US stock and commodity markets have not yet opened for the regular session.

The move followed comments from Iran's foreign minister, Araghchi, who said US "excessive demands" were hindering negotiations. That statement came after a six-day offer to reopen the Strait of Hormuz collapsed on Tuesday evening. Tanker traffic through the strait remains far below its normal pace, according to Tasnim.

Government data also showed US crude inventories fell, adding a conventional tightening signal alongside the geopolitical tension. Brent's return above $111 extends a pattern seen since an earlier strike on Konark and the collapse of the six-day reopening offer, in which each diplomatic denial or hardline statement from Iran has reinforced the risk premium rather than eased it.

Israeli strike plans against Iran have reportedly been shelved until after the midterm elections, and fighter jets have instead been conducting exercises in Iraqi airspace near the Iranian border.