US-Iran Talks Send Oil Prices Tumbling Amid Hopes for Truce
Oil prices declined by approximately 2% on Friday as hopes for a truce between the US and Iran grew. The potential deal would involve Tehran reopening the Strait of Hormuz in exchange for Washington lifting its economic blockade.
US-Iranian negotiators are reportedly exploring a phased path out of war, with the Strait's reopening being a key step. This move could ease concerns about oil supply disruptions from the Middle East.
The Brent futures price fell $2.28 to settle at $104.32 per barrel, while West Texas Intermediate (WTI) crude decreased by $2.20 to settle at $92.41. The decline puts Brent up less than 1% for the week and WTI down about 8%.
An Iranian official stated that Iran will not compromise on its nuclear program, even if the US accepts the proposal to reopen the Strait of Hormuz.