US and Iran Explore Truce Amid Oil Price Volatility

Oil prices fell about 1% on Friday as markets weighed the possibility of a truce between the US and Iran against concerns that increasing attacks against Saudi Arabia by Houthi fighters could disrupt supply from the Middle Eastern producer.

Brent futures were down $1.14, or 1.1%, at $105.46 a barrel by 10:03 a.m. EDT (1403 GMT), while West Texas Intermediate (WTI) crude fell $1.05, also 1.1%, to $93.56.

The US and Iranian negotiators in New York are exploring a phased path out of war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran, sources close to the talks said.