Brent Crude Prices Dip Amid US-Iran Diplomatic Push

Oil prices declined on Friday after reports emerged that China is pushing for the restart of stalled US-Iran talks, potentially leading to a diplomatic resolution and a decrease in tensions.

The news caused crude prices to pull back, with Brent settling at $96.78 per barrel, down nearly 4% on the day but still up around 10% for the week. The US benchmark WTI ended at $89.31, down just over 3% and up more than 8% on the week.

The market remains cautious due to ongoing shipping disruptions near the Strait of Hormuz and the Bab el-Mandeb gateway into the Red Sea, which could crimp supply or slow shipments through these major energy chokepoints. JPMorgan estimates that each additional month of disruption could add around $7 to $8 per barrel to Brent's monthly average, potentially pushing it to around $114 if disruptions last three months.