Oil Prices Drop Amid US-Iran Truce Hopes and Ongoing Attacks
Oil prices dropped on Friday as markets assessed the possibility of a truce between the US and Iran, but concerns about ongoing attacks on oil facilities kept investors cautious. The Brent crude benchmark fell by 74 cents to $105.85 per barrel, while West Texas Intermediate (WTI) decreased by 81 cents to $93.80 per barrel.
The week's volatility had seen oil prices rise to a one-week high on Thursday, with Brent reaching its highest close since September 15 and WTI showing its first increase in days after being down 13% over the prior six sessions.
Diplomatic efforts are underway in New York, where US and Iranian negotiators 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. According to Tim Waterer, chief analyst at KCM Trade, 'Diplomatic hopes are essentially helping oil prices weather the latest military strikes in the Middle East, with crude trading moderately softer despite the attacks.'