China Steps In to Revive Stalled Peace Talks Between US and Iran, Oil Prices Rebound

Crude oil prices have surged nearly 10% this week due to rising tensions between the US and Iran, but China's efforts to revive stalled peace talks may lead to a decline in prices. On Friday, Brent crude settled at $96.78 a barrel, down $3.91, or 3.88%, while US West Texas Intermediate crude ended the session at $89.31 a barrel, falling $2.88, or 3.12%. The sharp decline came after reports that China had begun efforts to revive stalled peace talks between the US and Iran.

Despite the decline, both Brent and West Texas Intermediate remained on course for significant weekly gains. Oil prices had surged earlier in the week as the US and Iran traded missile strikes, shipping through the Strait of Hormuz dropped to a trickle, and Yemen's Houthis launched attacks on vessels in the Red Sea.

Analysts predict that continued disruptions to oil supplies could lead to higher prices. JPMorgan estimates that every additional month of disruption could add around $7 to $8 a barrel to Brent prices, while Goldman Sachs warns that Brent crude could rise to $120 a barrel if disruptions persist.