Iran Tensions Dampen Oil Prices as Weekly Loss Looms

Oil prices are poised to snap their two-week winning streak as diplomatic challenges with Iran and new US sanctions weigh on markets. The Brent crude futures fell by 25 cents, or 0.3%, to $89.45 a barrel by 0035 GMT, while West Texas Intermediate crude futures dropped 22 cents, also 0.3%, to $83.31.

According to Reuters, the oil prices have been affected by the ongoing diplomatic stalemate with Iran. Despite a report that US President Donald Trump is not interested in returning to previous deal terms with Iran, the markets are reassessing the prospects of resumed oil flows and supply risks.

The new US sanctions on Iran, described as the 'toughest in history,' have complicated diplomatic efforts but Tehran claims they have lost effectiveness. The situation has raised concerns about the potential impact on global oil supplies and prices.