Oil Falls as Trump Extends Iran Deadline Before Attacking Energy Facilities

Oil prices fell in early trading on Friday, ending a volatile week lower, after US President Donald Trump said talks with Iran to end the war were going "very well" and announced a 10-day extension of the deadline before launching attacks on Iranian energy facilities.

By 00:24 GMT, Brent crude futures fell 90 cents or 0.8% to $107.11 per barrel, while US WTI crude futures lost 83 cents or 0.88% to $93.65 per barrel, paring gains from the previous session.

Brent had risen 5.7% and WTI 4.6% on Thursday due to war escalation fears, even though the volume of Brent's nearest-delivery contract was the lowest since February 27 — the day before the United States and Israel began air strikes against Iran.

Nevertheless, Brent is heading for its first weekly loss in six weeks, while US crude is losing ground for the second consecutive week amid Trump's talk of potentially ending the war.

In a Truth Social post on Thursday, Trump wrote: "At the request of the Iranian government... I am suspending the destruction of energy facilities for 10 days until Monday, April 6, 2026, at 8:00 PM Eastern Time."

By contrast, an Iranian official told Reuters that the US 15-point proposal, delivered to Tehran by Pakistan, had been reviewed in detail by senior Iranian officials and a representative of the Supreme Leader on Wednesday. The official described the plan as "one-sided and unfair".

Trump said on Thursday that Iran had allowed ten oil tankers to pass through the Strait of Hormuz as a goodwill gesture in negotiations, adding that the vessels were flying Pakistan's flag.

Nevertheless, the United States is sending thousands of troops to the Middle East as Trump considers the possibility of deploying ground forces to seize Kharg Island, Iran's strategic oil hub.

The war on Iran has caused the loss of 11 million barrels of oil per day from global supplies.