Oil markets showed a modest pullback on Friday, with Brent crude slipping 74 cents to $105.85 a barrel and West Texas Intermediate (WTI) down 81 cents to $93.80. The decline came as traders weighed reports of a potential diplomatic truce between the United States and Iran, even as Houthi rebels continued to target Saudi facilities.
Market reaction to diplomatic talks
Tim Waterer, chief analyst at KCM Trade, said the prospect of renewed US‑Iran talks was helping oil prices weather the latest military strikes in the Middle East. “Diplomatic hopes are essentially helping oil prices weather the latest military strikes in the Middle East, with crude trading moderately softer despite the attacks,” Waterer explained.
Recent price volatility
Friday’s modest dip contrasted sharply with a week of sharp volatility. On Thursday, both Brent and WTI surged to one‑week highs, each climbing as much as 5%. Brent closed up 3.4% and WTI rose 2.7% that day. Since that peak, Brent has posted its highest close since September 15, while WTI has fallen 13% over the prior six sessions and is down 6.42% for the week, compared with Brent’s 2.09% rise.
Negotiations in New York
US and Iranian negotiators are meeting in New York to explore a phased path out of the conflict that began in February. Sources close to the talks say the plan would see Tehran reopen the Strait of Hormuz while Washington lifts its economic blockade of Iran.
Continued regional threats
Despite diplomatic overtures, the security environment remains tense. Saudi Arabia reported intercepting six ballistic missiles launched by Yemen’s Iran‑backed Houthi forces, thwarting attacks on the southern province of Taif and the Red Sea port of Yanbu. “Ongoing attacks serve as a clear reminder that critical oil assets remain firmly in the firing line,” Waterer added.
Saudi production response
Saudi Arabia is increasing crude output through its East‑West Pipeline to the Red Sea export hub of Yanbu, although tanker loadings have not yet resumed, according to industry sources, satellite imagery, and shipping data.
Broader market context
Since the war began at the end of February, roughly one‑fifth of global oil and gas shipments have been curtailed, pushing prices up by about 50% in March. The disruption also prompted liquefied natural gas buyers to seek more stable supplies from alternative sources.
Analysts note that while diplomatic progress can provide short‑term relief to markets, the persistence of missile strikes and regional instability continues to weigh on investor confidence.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
