Oil prices ease as markets watch Iran truce talks

Oil prices saw a slight decline on Friday as traders considered the potential US-Iranian truce amidst recent Houthi missile attacks on Saudi oil facilities. Brent crude dropped 74 cents, or 0.69%, to $105.85 a barrel, while West Texas Intermediate (WTI) fell 81 cents, or 0.86%, to $93.80 a barrel. The muted opening contrasted with a volatile week where oil prices surged to a one-week high on Thursday, climbing up to 5%.

Brent rose 3.4% to a one-week high, while WTI gained 2.7%. This marked a reversal for WTI, which had plummeted 13% over the previous six sessions and was down 6.42% for the week. US and Iranian negotiators in New York discussed a phased approach out of the war, potentially involving Tehran reopening the Strait of Hormuz and Washington lifting its economic sanctions on Iran.

Analysts noted that diplomatic hopes helped stabilize oil prices despite the recent strikes. Since the conflict began in February, roughly one-fifth of global oil and gas shipments have been disrupted, driving prices up by 50% in March and prompting liquefied natural gas buyers to seek alternative, more stable supplies. On Thursday, Iranian President Masoud Pezeshkian stated that it was the US's decision to determine when the war would end, responding to a Fox News interview question.

Saudi Arabia intercepted six ballistic missiles fired by Houthi rebels, protecting key southern provinces and the Yanbu Red Sea port. Ongoing attacks highlight that critical oil assets continue to be targeted, underscoring the vulnerabilities of the region's vital energy infrastructure.