Biden's statement on Iran's potential cease-fire with Israel maintains oil prices stability.

• President Joe Biden stated that a cease-fire agreement in Gaza might hinder Iran from launching an attack on Israel.
• The president stated that achieving a cease-fire is becoming increasingly difficult.
• Earlier this week, oil prices rose due to Iran-Israel tensions, but have since decreased due to softening demand in China.

On Wednesday, U.S. crude traded above $78 per barrel as President Biden stated that Iran may abstain from attacking Israel if a cease-fire agreement is reached in Gaza, causing oil futures to remain unchanged.

Biden stated that he believes Iran will not attack Israel if a cease-fire agreement is reached to end the conflict in Gaza, although he acknowledged that negotiations are becoming increasingly difficult.

New cease-fire talks are set to commence in Qatar on Thursday, but Hamas has informed Reuters that they will not participate in the discussions.

Here are Wednesday's energy prices:

• The September contract price for crude oil is $78.31 per barrel, which is a decrease of 4 cents or 0.05%. To date in the year, the US has seen an increase of approximately 9.3% in crude oil.
• The October contract price per barrel is $80.76, an increase of 7 cents or 0.09%, while the global benchmark is leading 4.8% year to date.
• The price of gasoline in September is $2.36 per gallon, which is a decrease of 1 cent or 0.5%. However, year to date, gasoline prices have increased by approximately 12.4%.
• The September contract price for natural gas is $2.16 per thousand cubic feet, which represents a decrease of over 1 cent or 0.79%. To date, gas prices have fallen by 13.9% year-over-year.

After a Hamas leader was assassinated in Tehran two weeks ago, Iran has threatened to retaliate against Israel. In response, Israel has increased its military readiness, and the U.S. is sending a carrier strike group and guided missile submarine to the region to protect its ally.

On Monday, U.S. crude oil prices increased by more than 4% due to rising tensions between Iran and Israel. However, the market has since retraced as decreasing demand in China has affected the market.

In Washington, there is a widely held belief that Iran does not desire a full-blown war and instead prefers a low-intensity, proxy conflict, according to Helima Croft, the head of global commodity strategy at RBC Capital Markets, who shared this view with clients in a research note on Tuesday.

The White House's efforts to control the conflict in Gaza may be challenging, as a cease-fire agreement remains elusive, according to Croft. Furthermore, delaying an attack by Iran beyond this week appears risky, she stated.