Oil Prices Fall as Truce Hopes Offset Middle East Tensions

Oil prices fell about 3% on Friday as markets reacted to hopes for a truce between the US and Iran, but remained wary of attacks on oil facilities in the Middle East.

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

The truce talks between the US and Iran are ongoing in New York, with sources close to the negotiations saying that a phased path out of war is being explored. This would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade on Iran.