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

Oil prices experienced a slight decline on Friday as investors assessed the potential of a US-Iranian ceasefire, despite recent attacks on 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 market's muted response marked a stark contrast to the week's volatility, when oil prices surged to a one-week high.

Brent settlement even reached a one-week high since September 15, marking the first increase in days for WTI, which had plummeted 13% over the previous six sessions and 6.42% for the week.

U.S. and Iranian negotiators are negotiating a phased approach to avoid war, involving Iran reopening the Strait of Hormuz and the U.S. lifting its economic blockade of Iran, according to sources. Despite the talks, oil production in Saudi Arabia is increasing through the East-West Pipeline that transports crude to Yanbu, the Red Sea export hub.

However, tanker loadings have yet to resume. Oil prices have risen by 50% in March alone, with liquefied natural gas buyers seeking new, stable sources of supply. The attacks highlight that critical oil assets remain vulnerable, underscoring the ongoing risks.