Oil Prices Dip Amid Truce Hopes and Ongoing Attacks
Oil prices saw a slight decline on Friday as markets weighed the possibility of a truce between the US and Iran against ongoing attacks on oil facilities. Brent crude was down 87 cents, or 0.82%, at $105.73 a barrel, while West Texas Intermediate (WTI) fell by $1.56, or 1.65%, to $93.05 a barrel.
The drop in prices comes after a week of volatility, with oil prices rising to a one-week high on Thursday. Both contracts rose as much as 5%, but the spread between Brent and WTI remains wide due to fears of a US ban on diesel exports that could flood the domestic market.
US and Iranian negotiators are exploring a phased path out of war, which would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran. The war has curtailed around a fifth of global oil and gas shipments since it began in late February, pushing up prices by 50% in March alone.