Oil Prices Slide as US-Iran Talks Gain Momentum Amid Diesel Export Ban Speculation

Oil prices fell about 2% on Friday as hopes for a truce between the US and Iran grew, coupled with talk of a possible US ban on diesel exports.

Brent futures dropped by $2.28, or 2.1%, to settle at $104.32 a barrel, while West Texas Intermediate (WTI) crude fell by $2.20, or 2.3%, to settle at $92.41.

The US and Iran are reportedly exploring a phased path out of war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade on Iran.

Iranian officials said they will not show flexibility over their nuclear program, even if the US accepts its proposal to reopen the Strait of Hormuz.