Oil Prices Slip as US-Iran Talks Spark Hopes and Skepticism

Oil prices fell on Friday as traders weighed tentative signs that talks between the US and Iran to reopen the world's most important energy shipping route, the Strait of Hormuz, were progressing.

The West Texas Intermediate futures fell about 2.3% to settle near $92 a barrel, marking its first weekly drop since late August.

Despite the talks, some traders remained skeptical that a deal would materialize, citing previous failed attempts at negotiations between the two countries.

A White House official said President Donald Trump remained open to talking with Iran but emphasized the US didn't need to negotiate due to its strong position resulting from sanctions and the blockade.

Even if a diplomatic breakthrough occurs, it may not immediately restore disrupted flows or boost dwindling inventories, according to Emily Ashford, head of energy research at Standard Chartered Bank.