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 considered the potential US-Iran truce amid ongoing attacks on oil facilities. Brent crude slipped 87 cents, or 0.82%, to $105.73 a barrel, while West Texas Intermediate (WTI) fell $1.56, or 1.65%, to $93.05 a barrel. The muted response marked a stark contrast to the previous week's volatility, with prices surging as much as 5% on Thursday.

Brent reached its highest close since September 15 and WTI posted its first rise in days after being down 13% over the prior six sessions and 6.42% for the week.

The widening gap between Brent and WTI, now at $12.68, reflects differing regional risk profiles. US and Iranian negotiators in New York are exploring a phased de-escalation, which could include Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran. Since the conflict began in late February, roughly a fifth of global oil and gas shipments have been disrupted, driving prices up by 50% in March alone and forcing liquefied natural gas buyers to seek alternative, more stable supplies.

A Saudi-led coalition intercepted six ballistic missiles launched by Yemen's Houthis, preventing strikes on southern Taif and the Red Sea port of Yanbu. Analysts warn that these attacks highlight the vulnerability of critical oil assets, stressing that Saudi Arabia is ramping up output via the East-West Pipeline, leading to a potential resumption of tanker loadings at its Red Sea hub.