Oil Prices Slump as Iran Tensions Escalate and Geopolitics Intensify

Oil prices fell on Friday and were set to end their two-week rally, despite rising in the previous session following reports of US President Donald Trump's stance on a deal with Iran.

Brent crude oil prices declined by 25 cents or 0.3% to USD 89.45 a barrel at 00:35 GMT. West Texas Intermediate (WTI) crude oil fell 22 cents or 0.3% to USD 83.31 a barrel, with both benchmarks expected to record declines for the week.

Brent was heading for a 5.3% decline and WTI a 4.3% drop. The Trump administration has reportedly told mediators that it is not interested in reviving an agreement reached in June, complicating diplomatic efforts to restart negotiations between the US and Iran.

Russia-UK tensions also rose after Moscow warned of striking British military targets inside and outside Ukraine due to Kyiv's attacks on Russian territory using long-range cruise missiles supplied by Britain. However, Trump played down media reports that CIA Director John Ratcliffe had warned Russian officials against carrying out such an attack.