Brent Drops 74 Cents to $105.85 as US-Iran Truce Talks Weigh on Oil

Crude oil prices declined modestly on Friday as traders assessed competing influences, including the possibility of a truce between the United States and Iran.

Brent crude fell by 74 cents, or 0.69%, to $105.85 per barrel. West Texas Intermediate (WTI) dropped 81 cents, or 0.86%, to $93.80 per barrel. Trading opened sluggishly, contrasting sharply with a volatile prior week.

On Thursday, oil prices had climbed to their highest level in seven days. Brent rose 3.4% at settlement, while WTI gained 2.7%.

Diplomatic Pathways in New York

U.S. and Iranian negotiators are exploring a phased path toward ending hostilities, according to sources close to the talks this week, as reported by Reuters. That pathway includes Tehran’s resumption of operations at the Strait of Hormuz and Washington’s lifting of economic sanctions imposed on Iran.

Separately, Brent crude fell 0.8% to $105.75 a barrel on Friday after rising 3% overnight, following an attack on Saudi Arabia carried out by Iran-aligned Houthi forces — an incident that reignited concerns over potential supply disruptions.

Oil remained above the $100-per-barrel threshold as markets continued to weigh reports of U.S.-Iran diplomatic engagement.

Tim Waterer, chief analyst at KCM Trade, stated: “Diplomatic hopes are essentially helping oil prices hold up against the recent wave of military strikes across the Middle East.”