Oil Prices Plummet as China Pushes for US-Iran Peace Talks

Crude oil prices plummeted more than 4% on Friday after sources revealed China's efforts to push for resumed peace talks between the US and Iran. This news sparked a rally in oil futures, with Brent settling at $96.78 a barrel and WTI finishing at $89.31. Analysts attributed the price drop to 'hope' and expectations that tensions would ease.

Energy markets were already on edge due to recent missile strikes between the US and Iran, as well as the Houthis attacking shipping in the Red Sea. The Strait of Hormuz saw a trickle of traffic, with three vessels passing through each day for the past three days, according to Kpler data.

Russia's forces also struck Ukrainian ports overnight, targeting infrastructure that supported Ukraine's armed forces. Meanwhile, Kazakhstan's energy ministry reported that oil companies temporarily reduced production after suspected drone attacks forced the country's main Black Sea export terminal to close.