Oil Prices Fall as Markets Weigh US-Iran Truce Against Ongoing Attacks
Oil prices dipped on Friday as market participants weighed the prospect of a US-Iran truce against ongoing attacks on oil facilities in the Middle East. The Brent crude contract fell by $0.74, or 0.69%, to $105.85 per barrel at 0032 GMT, while West Texas Intermediate (WTI) decreased by $0.81, or 0.86%, to $93.80 per barrel.
The price drop was a contrast to the previous week's volatility, during which oil prices rose to their highest level in over a month on Thursday. The Brent contract notched its highest close since September 15, while WTI had its first rise in days after being down 13% over the prior six sessions.
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. Tim Waterer, chief analyst at KCM Trade, noted that diplomatic hopes were helping oil prices weather the latest military strikes in the Middle East.
However, ongoing attacks on critical oil assets remain a concern, according to Waterer. He pointed out that Saudi Arabia intercepted six ballistic missiles fired by Yemen's Iran-backed Houthis, thwarting attacks on the southern province of Taif and the Yanbu area on the Red Sea.