Oil Prices Decline as US-Iran Talks Stall

Oil prices declined on Friday amid reports of a potential deal between the US and Iran to reopen the Strait of Hormuz, easing concerns over supply disruptions.

The price of Brent crude slipped towards $105.6 per barrel after rising by over 7% in the previous two sessions, while West Texas Intermediate traded below $94. The Strait of Hormuz is a crucial waterway for global oil supplies and its closure would significantly impact prices.

Physical markets showed tightness, with record premiums paid for prompt barrels at Cushing, Oklahoma, according to reports. Dated Brent has been trading at a wide premium to futures in Europe, underscoring scarce near-term supply.

The US-Iran conflict is approaching its seventh month and oil markets remain highly volatile due to changing expectations around the war and speculations about Washington restricting diesel exports.