Oil Prices Plummet Amid US-Iran Truce Hopes, Saudi Security Threats

Oil prices dropped by about 2% on Friday due to growing hopes for a US-Iran truce. Brent crude fell by $2.28, or 2.1%, to $104.32 a barrel, while WTI crude dropped by $2.20, or 2.3%, to $92.41.

US and Iranian negotiators explored a possible phased agreement in New York, which could involve Iran reopening the Strait of Hormuz in return for Washington lifting its economic restrictions on Tehran.

However, Iran said it would not compromise on its nuclear program, and Saudi Arabia faced growing security concerns due to repeated Houthi attacks. The Houthis have targeted the Saudi-backed government in Yemen and launched strikes toward Saudi territory.