US-Iran Truce Talks Send Oil Prices Down as Hormuz Hopes Rise

Oil prices declined on Friday as investors weighed the possibility of a phased agreement between the United States and Iran that could reopen the Strait of Hormuz and restore more energy shipments through one of the world’s most important oil transit routes.

The decline followed a sharp rally in the previous session when renewed attacks around Saudi Arabia pushed geopolitical supply concerns back to the forefront of the market.

Brent crude oil had settled Thursday at $106.60 per barrel, gaining $3.52, or 3.4 percent and recording its highest closing level since September 15.

Under a phased arrangement being discussed by both sides, Iran could reopen the strategic waterway while the United States eases or removes its economic blockade of Tehran.