Oil Prices Slide as US-Iran Truce Hopes Outweigh Saudi Arabia Disruptions
Oil prices fell by about 2% on Friday due to mounting hopes for a truce between the US and Iran, as well as talk of a possible US ban on diesel exports. Despite increasing attacks against Saudi Arabia by Houthi fighters, which could disrupt supply from the Middle Eastern producer, oil prices slid.
Brent futures fell $2.28, or 2.1%, to settle at $104.32 a barrel, while West Texas Intermediate (WTI) crude fell $2.20, or 2.3%, to settle at $92.41. This put Brent up less than 1% for the week and WTI down about 8%.
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. However, Iran said it will show no flexibility over its nuclear program even if the US accepts its proposal.