For the past year, Iran has been weighing over crude oil price from time to time. Last year the oil market continued its suffering as Iran was largely expected to return to the market after it reached a nuclear deal with the western world. This year, the focus has been on the relation between Saudi Arabia and Iran. Both of these countries remain at loggerheads over religious conflict.

Last night, global benchmarks, Brent and WTI jumped sharply after a news report from Reuters indicated that Iran is sending out positive signals that it may support joint action to pop up the market price. Several of the OPEC members have been trying for a deal to freeze production but the last attempt in April broke down after Saudi Arabia said that it won’t take actions without Iran taking the same. If April would have been successful, it would have been first joint action by OPEC and non-OPEC members like Russia for the first time in several decades.

Brent benchmark traded as high as $50.2 per barrel on the news but the optimism disappeared after official denial came from Iran. As of now, Iran would not confirm whether it would attend the informal meeting scheduled late next month. Oil price started declining after the news and Brent is currently down to $49.4 per barrel and WTI is trading at $2.1 per barrel discount to Brent.