Oil Prices Fall as Markets Weigh Truce with Iran Amid Ongoing Attacks
Oil prices have dropped slightly as markets weigh the possibility of a truce between the US and Iran against ongoing attacks on oil facilities. Brent crude fell by 74 cents, or 0.69%, to $105.85 a barrel, while West Texas Intermediate (WTI) decreased by 81 cents, or 0.86%, to $93.80 a barrel.
The decline is in contrast to the week's volatility, during which oil prices rose to a one-week high on Thursday, with Brent settling up 3.4% and WTI rising 2.7%. This marks Brent's highest close since September 15.
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 military strikes in the Middle East, with crude trading moderately softer despite attacks. Ongoing attacks serve as a reminder that critical oil assets remain at risk, said Tim Waterer, chief analyst at KCM Trade.