Oil on track for weekly loss even as Iran tensions simmer

Oil prices dipped on Friday, poised to end the week with a decline, despite a previous session's gain following a report that U.S. President Donald Trump has no interest in returning to previous deal terms with Iran. Brent crude futures fell 60 cents to $89.10 a barrel, while West Texas Intermediate crude fell 64 cents to $82.89.

Both benchmarks were expected to conclude the week lower, with Brent down 5.3% and WTI falling 4.3%. In the face of diplomatic setbacks, there are indications that additional oil could flow through the Strait of Hormuz, according to ING analysts. Producers have grown more comfortable navigating the strait amidst ongoing tensions.

Goldman Sachs estimated recent total Gulf exports at 15-16 million barrels per day, 7-8 million bpd below pre-war levels, but 5-6 million above the lowest point in March. The Wall Street Journal reported that the Trump administration has repeatedly conveyed to mediators its reluctance to revive the June memorandum of understanding, complicating diplomatic efforts to resume talks.

The U.S. announced on Thursday the toughest sanctions ever imposed on Iran, with Tehran calling them an "inhumane and hostile act" that had lost its effectiveness. Russia warned it could target British military assets inside and outside Ukraine in response to Kyiv's attacks using British-supplied long-range cruise missiles. Despite this, Trump stated that Russian President Vladimir Putin would not attack a NATO country and downplayed reports that CIA Director John Ratcliffe had warned Russian officials against such an attack. Britain, a founding member of NATO, remains involved in these evolving geopolitical tensions.