Iran Truce Talks Ease Crude Risk Amid Ongoing Saudi Threats
Oil markets took a more balanced approach on Friday as US and Iranian diplomats worked to end the seven-month-old conflict. The potential resumption of Iranian shipments would release a significant amount of crude and other petroleum products onto the global market.
Crude and other petroleum products have been restricted since February, when disruptions began. If Iran reopens the Strait of Hormuz and the US removes its sanctions and blockades on Iran, these products would again be available globally.
Tehran and Washington are considering a phased approach to lifting the current restrictions. Negotiators are meeting in New York.
In the meantime, Saudi Arabia has intercepted six Houthi missiles since Thursday. One of the locations is Taif, home to a major oil processing facility, while Yanbu is the terminus of the East-West Pipeline.