Oil Prices Slide on Hopes for US-Iran Truce

Oil prices fell about 2% on Friday as hopes rose for a truce between the US and Iran, according to Scott DiSavino's report from New York. Negotiators are exploring a phased path out of war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran.

The price drop occurred despite increasing attacks against Saudi Arabia by Houthi fighters, which could disrupt supply from the Middle Eastern producer. Brent futures fell $2.28, or 2.1%, to settle at $104.32 a barrel, while West Texas Intermediate crude fell $2.20, or 2.3%, to settle at $92.41.

The US and Iranian negotiators are discussing a plan that would see Tehran reopen the Strait of Hormuz in exchange for Washington lifting its economic blockade of Iran. However, Iran said it will show no flexibility over its nuclear program even if the US accepts its proposal.