Brent Crude Prices Plummet on Hopes of US-Iran Peace Talks
Brent crude oil prices fell more than 5% to around $95 per barrel on Friday, following reports that Pakistan and China are seeking to revive US-Iran negotiations. This development has raised hopes for a diplomatic solution to ease tensions in the region.
According to sources, Chinese officials are concerned about attacks on Gulf states and disruptions in the Strait of Hormuz, which they believe are hurting their economic interests.
The decline in Brent prices was despite crude oil remaining up roughly 8% for the week after a sharp escalation in Middle East hostilities. Overnight, US Central Command carried out its 13th consecutive night of strikes on Iran, targeting military infrastructure and maritime capabilities.
US President Donald Trump warned that he is considering an unprecedented military response against Iran, and vowed severe retaliation if Tehran backs further Houthi attacks on vessels in the Red Sea.