Oil Prices Decline as Diplomacy Takes Center Stage Amid US-Iran Conflict

Oil prices fell for the third consecutive day on Friday as concerns over supply disruptions eased, offset by renewed diplomatic efforts to address the escalating US-Iran conflict.

The price of Brent crude futures slipped 0.7% to $104.12 per barrel, while West Texas Intermediate (WTI) crude futures declined 0.5% to $101.40 per barrel as of 22:31 ET (02:31 GMT), according to Investing.com.

The declines came despite fresh fighting between Saudi Arabia and Yemen's Iran-backed Houthis, which has added another layer of risk to oil supplies in the conflict that has already disrupted shipments through the Strait of Hormuz. However, markets focused on reports that Saudi Arabia is seeking to partially restore flows through its East-West pipeline, damaged in drone attacks last week.

Saudi Arabia aims to revive about half of the pipeline's capacity within days, according to media reports, and has also offered additional crude cargoes to Asian refiners via ship-to-ship transfers off Oman's Sohar port. This alternative route may ease concerns over lost volumes, although the supply outlook remains highly uncertain.