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

Oil prices dipped slightly on Friday as traders weighed the potential of a US-Iranian truce against ongoing attacks on oil facilities. Brent crude fell 74 cents, or 0.69%, to $105.85 a barrel, while West Texas Intermediate (WTI) slipped 81 cents, or 0.86%, to $93.80 a barrel. The modest decrease marked a sharp contrast to a volatile week when oil prices surged to a one-week high on Thursday, with both contracts up as much as 5%.

Brent's settlement marked its highest close since September 15, while WTI's rise was its first in days. However, crude prices were still down 6.42% for the week, compared to Brent's 2.09% increase over the same period. Diplomatic talks between the US and Iran in New York aimed at ending the conflict and reopening the Strait of Hormuz are providing some reassurance to oil markets.

Meanwhile, Saudi Arabia intercepted six Houthi missiles targeting southern Saudi Arabia, preventing strikes on key oil assets. Saudi Arabia is increasing crude production through its East-West Pipeline, but tanker loadings to the Red Sea export hub remain halted. Analysts caution that attacks on oil infrastructure remain a significant risk to global oil supplies.