Brent Crude Slumps Amid Hopes for Strait of Hormuz Deal

Oil prices took a hit on Friday as reports of US-Iran talks fueled hopes for a deal that could reopen the Strait of Hormuz and ease supply disruptions. Brent crude dropped towards $105.6 a barrel, while markets remained tight and volatile amid ongoing geopolitical tensions.

The conflict has been raging for seven months, causing oil prices to remain highly volatile. Despite this, Brent remains over 70% higher for the year, adding to global inflationary pressure.

The US has maintained that it will not negotiate from a position of weakness, while Iran has asserted its sovereignty over the Strait of Hormuz. Saudi Arabia intercepted several ballistic missiles on Thursday, and French President Emmanuel Macron announced plans to deploy troops to secure a Saudi energy facility.