Oil Prices Slip as Trump Rejects Iran Deal Terms Amid Rising Tensions

Oil prices dropped on Friday and are set to decline for the first time in three weeks, despite US President Donald Trump's rejection of the terms of an earlier deal with Iran. The Brent crude futures price fell by $0.50, or 0.6%, to $89 a barrel, while West Texas Intermediate crude futures declined by $0.42, or 0.50%, to $83. Brent is on track to lose 5.3% for the week, while WTI is set to fall 4.3%. The decline comes despite Trump's rejection of the deal, which was reportedly communicated to mediators.

The Wall Street Journal reported that the US administration had repeatedly told mediators it did not want to revive the June memorandum of understanding. This stance has complicated diplomatic efforts aimed at restarting talks between Washington and Tehran.

Geopolitical tensions are also escalating elsewhere, with Moscow warning it could target British military targets inside and outside Ukraine in response to attacks by Kyiv on Russian territory using British-supplied long-range cruise missiles.