Oil falls Friday as markets hope for a U.S.–Iran ceasefire: Brent at $105.85

Oil prices fell slightly on Friday as markets weighed the possibility of a ceasefire between the United States and Iran, after a week of volatility caused by renewed attacks in the Middle East.

Brent crude fell 74 cents, or 0.69 percent, to $105.85 a barrel, while U.S. West Texas Intermediate (WTI) fell 81 cents, or 0.86 percent, to $93.80 a barrel, according to Friday morning data. The day’s slow start contrasted with a volatile week, when prices rose as much as 5 percent on Thursday — the highest closing level since September 15.

Diplomatic hopes come from New York, where American and Iranian negotiators are exploring a phased exit from the war that would include Tehran’s reopening of the Strait of Hormuz and Washington’s lifting of the economic blockade of Iran, sources close to the talks said. “Diplomatic hopes are essentially helping oil prices to shrug off the latest military attacks in the Middle East, with oil trading a touch softer despite the attacks,” said Tim Waterer, chief analyst at KCM Trade.

On Thursday, Iranian President Masoud Pezeshkian said it is up to the U.S. to choose when the war with Iran ends. “It is America that must choose whether it wants to end it or not,” Pezeshkian said in an interview broadcast Thursday on Fox News.

Meanwhile military tensions continue: Saudi Arabia announced it had intercepted six ballistic missiles fired by Iran-backed Houthi rebels in Yemen, thwarting attacks on the southern province of Taif and the Yanbu area on the Red Sea, according to the Saudi-led coalition in Yemen. Saudi Arabia is increasing oil pumping volumes through the East–West pipeline toward the export hub at Yanbu on the Red Sea, although tanker loadings have not yet resumed.

Since the start of the war in late February, about a fifth of global oil and gas shipments have been disrupted, pushing prices 50 percent higher in March alone.

Source: Reuters