Oil Prices Ease Amid US-Iran Truce Hopes and Saudi Supply Concerns
Oil prices fell by about 1% on Friday as markets weighed the possibility of a truce between the US and Iran against concerns that increasing attacks against Saudi Arabia could disrupt supply from the Middle Eastern producer.
Brent futures were down $1.14, or 1.1%, at $105.46 a barrel by 10:03 a.m. EDT (1403 GMT), while West Texas Intermediate (WTI) crude fell $1.05, also 1.1%, to $93.56.
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.
Diplomatic hopes are helping oil prices weather the latest military strikes in the Middle East, with crude trading moderately softer despite the attacks, said Tim Waterer, chief analyst at KCM Trade.