Oil Prices Fall Amid Hopes for US-Iran Truce

Oil prices fell by about 3% on Friday as markets reacted to mounting hopes for a truce between the US and Iran, despite concerns over attacks on oil facilities in Saudi Arabia. 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'.

The Brent futures rose $2.96, or 2.8%, to $103.64 a barrel by 12:12 p.m. EDT (1612 GMT), while West Texas Intermediate (WTI) crude fell $2.86, or 3.0%, to $91.75.

The US and Iranian negotiators in New York 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, sources close to the talks said.