Tung oil or wax would be the best possible choices for showing the wood's texture, and the tung oil will provide better moisture protection than wax.
I would not sand between coats. With tung oil it's not necessary for creating a "tooth" for subsequent coats and could load up the grain with sanding dust.
The film you build up with tung oil is extremely thin, which is what shows the texture, and it has a low gloss.
Be very sure you follow label directions about handling the rags you use to apply it. That is, they should be spread out flat away from other flammibles until dry and discarded. Do not under any circumstances leave them wadded up, as they can spontaniously combust.