Oil Prices Plunge Amid US-Iran Tensions
Oil prices fell on Friday and were headed for their first weekly drop in three weeks despite rising tensions between the US and Iran.
Brent crude futures slipped 25 cents, or 0.3%, to $89.45 a barrel, while West Texas Intermediate (WTI) crude futures fell 22 cents, or 0.3%, to $83.31 a barrel.
Both benchmarks were set to post weekly losses, with Brent down 5.3% and WTI lower by 4.3%.
Kaynat Chainwala of Kotak Securities noted that crude oil's extended losing streak is due to diplomatic progress on the Strait of Hormuz outweighing a smaller-than-forecast US inventory build.
A joint administration structure, traffic-management mechanisms, and a new route are being discussed between Iran and Oman, with Iranian officials citing a 30-to-60-day window to finalize the new route.