Oil Prices Slide as Truce Hopes Weigh Against Houthi Attacks

Oil prices dropped on Friday as markets weighed the possibility of a truce between the US and Iran against concerns that increasing attacks by Houthi fighters could disrupt supply from key Middle Eastern producer Saudi Arabia.

Brent fell 40 cents, or 0.4%, to $106.20 per barrel, while West Texas Intermediate (WTI) dropped $1.02, or 1.1%, to $93.59 per barrel by 4:21 a.m. ET.

The US and Iranian negotiators are exploring a phased path out of war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade on Iran, according to sources close to the talks.

Iranian President Masoud Pezeshkian said it was up to the US to choose when the Iran war will end, with SEB Research's Erik Meyersson noting that neither side has an interest in a more intense and less controllable war.