Venezuela Deal Hints at Oil Price Recovery Amid US-Iran Conflict

Oil prices fell this week despite rising tensions between the US and Iran, which marked six months since their conflict began. The US and Israel launched a joint assault of missile strikes against Iran in June, but diplomatic efforts to bring the two nations to the negotiating table have stalled.

The Brent crude oil price shed nearly 5% for the week, falling from $88.24 to $83.44 per barrel. Analysts had warned that any actual supply increase from US control of Venezuela's oil assets would take time, given the large amount of development required in Venezuela's oil infrastructure.

The US is close to securing long-term access to a portion of Venezuela's vast crude reserves, according to Reuters. The deal would allow American companies to develop Venezuelan oilfields and could lead to an increase in supply.

However, any potential improvements in US-Iran relations were muddled after the Wall Street Journal reported that the US had told mediators it had no interest in going back to the terms of a memorandum of understanding signed with Iran in mid-June.