Oil Prices Decline as US-Iran Truce Hopes Weigh Against Regional Tensions

Oil prices declined on Friday as hopes for a possible U.S.-Iran truce weighed against fresh concerns over regional energy supplies. The Middle East tensions, including Houthi missile attacks on Saudi Arabia, have kept oil markets on edge.

Brent crude futures fell 87 cents to $105.73 a barrel at 2:12 a.m. GMT, while West Texas Intermediate (WTI) dropped $1.56 to $93.05. The declines came after both benchmarks surged as much as 5% during Thursday's volatile session.

The gap between Brent and WTI widened to $12.68, its largest level since May. This reflects the different regional risk profiles at play, said Tim Waterer, chief analyst at KCM Trade.