Oil Prices Decline as Markets Weigh Truce Hopes Amid Ongoing Attacks

Oil prices declined on Friday as markets weighed the possibility of a truce between the US and Iran against ongoing attacks on oil facilities. The decline was a contrast to the previous week's volatility, which saw oil prices rise to a one-week high on Thursday.

Brent crude fell by 74 cents or 0.69% to $105.85 per barrel, while West Texas Intermediate (WTI) decreased by 81 cents or 0.86% to $93.80 per barrel. The US and Iranian negotiators in New York are exploring a phased path out of war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran.

Iranian President Masoud Pezeshkian said it was up to the US to choose when the Iran war will end. Ongoing attacks on oil facilities serve as a clear reminder that critical oil assets remain firmly in the firing line, according to Tim Waterer, chief analyst at KCM Trade.