Oil Prices Plummet on Hopes of Renewed US-Iran Peace Talks

Oil prices plummeted by over 4% on Friday after reports emerged that China was trying to revive stalled peace negotiations between the US and Iran. This development has eased immediate concerns over escalating geopolitical tensions in the Middle East.

Despite the sharp decline, both international benchmark Brent crude and US West Texas Intermediate (WTI) remained on track for strong weekly gains. The heightened supply risks following missile exchanges between the US and Iran, reduced tanker traffic through the Strait of Hormuz, and attacks on commercial shipping in the Red Sea by Yemen's Houthi forces have contributed to this trend.

Brent crude settled at USD 96.78 per barrel, down USD 3.91 or 3.88%, after closing above the USD 100 per barrel mark in the previous session for the first time since May. Even with Friday's decline, Brent was set to record a weekly gain of nearly 10%.