Pakistan's Push for US-Iran Talks Sends Oil Prices Plummeting

Oil prices plummeted nearly 4% on Friday after reports emerged that Pakistan is pushing for new U.S.-Iran talks, backed by China. This development comes as tensions between the two nations continue to escalate, with the U.S. Central Command launching its 13th consecutive night of strikes against Iran.

The Brent crude futures contract fell to $96.78 a barrel, while U.S. West Texas Intermediate crude futures lost 3% to settle at $89.31 per barrel. This drop follows a week in which oil prices surged due to fighting in the Middle East.

Pakistan's efforts to restart talks between the U.S. and Iran are reportedly backed by China, which is concerned about the impact of Iranian attacks on Gulf states and the closure of the Strait of Hormuz on its own interests.

U.S. President Donald Trump has threatened a 'massive attack' on Iran if further attacks occur, following the conflict extending to a new battleground in the Red Sea. Trump stated that he is considering a massive strike 'bigger than ever before,' and that Iran has not received enough pain yet.