Oil prices fall as markets look to Iran truce, but remain wary of attacks on oil facilities

Oil prices experienced a slight decline on September 25, as traders balanced expectations of a potential US-Iran truce with concerns over recent attacks on oil facilities. Brent crude slipped 74 cents to $105.85 per barrel, while West Texas Intermediate (WTI) dropped 81 cents to $93.80 per barrel. The modest downward movement marked a contrast to the volatile week that saw oil prices surge to a one-week high.

Both futures contracts had risen by up to 5 percent on Thursday, with Brent reaching its highest close since September 15. The recent price surge followed the US and Iranian negotiators in New York discussing a phased approach to ending the conflict, which could involve Iran reopening the Strait of Hormuz and the US lifting its economic blockade of Iran.

Despite the ongoing attacks, diplomatic hopes seem to be helping stabilize oil prices, with crude trading relatively softer despite the military strikes. The war between the US and Iran has disrupted around a fifth of the world's oil and gas shipments, causing prices to jump by 50 percent in March. Meanwhile, Saudi Arabia intercepted six ballistic missiles launched by Houthi rebels from Yemen, protecting key oil assets in the southern province of Taif and Yanbu on the Red Sea.