WTI crude oil futures have climbed more than 2% as diplomatic talks between the United States and Iran at the United Nations General Assembly show little sign of progress. An adviser to Iran's Supreme Leader warned of a potential expansion of the conflict, heightening market concerns over the security of oil shipments through the crucial Strait of Hormuz. This renewed geopolitical tension is overshadowing a recent report of a surprise build in U.S. crude inventories, which would typically pressure prices lower. The market is now pricing in a higher risk premium as hopes for a de-escalation of the conflict diminish.