Oil Prices Plummet as Truce Hopes Outweigh Houthi Attack Concerns
Oil prices dropped more than 1% on Friday as markets weighed the possibility of a truce between the U.S. and Iran against concerns that increasing attacks against Saudi Arabia by Houthi fighters could disrupt supply from the key Middle Eastern producer.
The U.S. and Iranian negotiators in New York are exploring a phased path out of war, which would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran, according to sources close to the talks.
Iranian President Masoud Pezeshkian said it was up to the U.S. to choose when the Iran war will end.
The spread between Brent and WTI is the widest it has been since May at $12.83 a barrel, due in part to fears of a U.S. ban on diesel exports that could flood the domestic market.