US-Iran Talks Weigh on Oil Markets as Diesel Export Ban Looms

Oil prices fell by about 2% on Friday as talks of a US ban on diesel exports and hopes for a truce between the US and Iran weighed on markets.

The Brent futures price dropped $2.28, or 2.1%, to settle at $104.32 a barrel, while West Texas Intermediate (WTI) crude fell $2.20, or 2.3%, to settle at $92.41.

US and Iranian negotiators 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.

The Strait's oil exports have been a concern for global markets, with about 20% of the world's oil supplies moving through it before the start of the Iran war.