Oil Prices Drop as Markets Eye US-Iran Truce Amid Ongoing Attacks
Oil prices fell on Friday as markets weighed the possibility of a truce between the US and Iran against ongoing attacks on oil facilities. The Brent crude price dropped by 74 cents, or 0.69%, to $105.85 a barrel at 0032 GMT, while West Texas Intermediate (WTI) was down 81 cents, or 0.86%, at $93.80 a barrel.
The current market volatility is a contrast to last week's price spikes, with Brent rising by as much as 5% and WTI by 3.4%. However, WTI has been down 13% over the past six sessions and is now down 6.42% for the week, compared to Brent's 2.09% rise.
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 sources close to the talks.