Pakistan-Backed Iran Talks Send Oil Prices Lower Amid Ongoing Tensions

The oil market saw a pullback on Friday after reports of Pakistan-backed Iran talks led to profit-taking, but despite the decline, crude prices remain at elevated levels due to ongoing tensions in the region.

WTI and Brent crude both gained over 9% for the week, with WTI up 9.21% and Brent adding 9.85%, but Friday's pullback was seen as a temporary setback rather than a reversal of fortunes.

The market is still trading on the assumption that the Hormuz Strait will remain closed or partially restricted, with vessels requiring military escorts and insurance costs continuing to rise.

UBS has warned that even if fighting eases, Middle East shipping recovery will take longer than expected, with Brent price forecast at $85 by year-end if normalcy returns.