Oil on track for weekly loss even as Iran tensions simmer

Oil prices experienced a decline on Friday and are on track to break a two-week upward trend, following reports that President Donald Trump has no intention of adhering to previous deal terms with Iran. Brent crude futures dropped by 25 cents, or 0.3%, to $89.45 a barrel by 0035 GMT, while West Texas Intermediate crude futures declined by 22 cents, or 0.3%, to $83.31.

Both benchmarks were expected to end the week with a decrease, with Brent dropping 5.3% and WTI falling 4.3%. According to sources familiar with the situation, the Wall Street Journal reported that the Trump administration has consistently indicated it has no interest in reviving the June memorandum of understanding, hindering diplomatic efforts to resume negotiations.

Earlier that day, Washington denied engaging in talks with Iran, despite diplomatic efforts by other nations to re-engage the two countries. On Monday, the United States imposed what it described as the "toughest sanctions in history" on Iran. Tehran labeled the sanctions as an "inhumane and hostile act" that had become ineffective.

Simultaneously, geopolitical tensions escalated after Russia warned of striking British military targets within and outside Ukraine in response to Kyiv's attacks on Russian territory using British-supplied long-range cruise missiles. Despite these tensions, Trump maintained that Russian President Vladimir Putin would not attack a North Atlantic Treaty Organization (NATO) country and downplayed media reports suggesting CIA Director John Ratcliffe had cautioned Russian officials against engaging in such an attack. Britain, as one of the founding members of NATO, played a role in these escalating tensions.