Pakistan Pushes for New US-Iran Talks, Oil Prices Plummet

Oil prices plummeted more than 4% on Friday after reports emerged that Pakistan is pushing for new talks between the US and Iran, backed by China. The development comes as tensions in the Middle East continue to escalate.

Brent crude futures, the international benchmark, dropped nearly 5% to $95.73 a barrel, while US West Texas Intermediate crude futures fell 4.3% to trade at $88.27 per barrel.

According to three sources who spoke with Reuters, Pakistan's efforts to revive US-Iran talks have China's backing, as the country is unhappy with Iran's attacks on other Gulf states and the closure of the Strait of Hormuz, which affects Chinese interests.

US President Donald Trump has been warning of a 'massive attack' on Iran in response to its aggression, saying that the US will hold Iran responsible for further attacks by Yemen's Tehran-backed Houthis. The conflict has already led to increased instability around key shipping routes, with the Strait of Hormuz remaining open despite recent attacks.