Oil Prices Slump as Iran Deal Revival Hopes Dim and Tensions Rise

Oil prices declined on Friday and are poised to drop for the first time in three weeks, despite a previous surge following a report that US President Donald Trump was not interested in reviving the terms of an earlier deal with Iran.

The Brent crude futures fell by $0.50 (0.6%) to reach $89 a barrel, while West Texas Intermediate crude futures declined by $0.42 (0.5%) to $83 a barrel. The Brent crude price is on track to drop 5.3% for the week, while WTI is set to fall 4.3%.

The Trump administration has reportedly told mediators that it does not want to revive the June memorandum of understanding with Iran. This stance has complicated diplomatic efforts aimed at restarting talks between Washington and Tehran.

Geopolitical tensions also intensified, as Moscow warned it could target British military targets in response to attacks by Kyiv on Russian territory using British-supplied long-range cruise missiles. However, Trump downplayed the risk of an attack, stating that Russian President Vladimir Putin would not attack a NATO country.