Brent Falls More than 10% as Trump Delays Iran Strikes

Brent crude eased to around $104.5 a barrel on Friday after Iran called on the US to return to an interim peace deal that failed to end the war over the summer. The agreement would resemble the memorandum of understanding reached by the US and Iran in mid-June, which led to a fragile ceasefire that collapsed weeks later. Iran’s foreign minister proposed reopening the Strait of Hormuz and resuming nuclear talks with the US within seven days if the Trump administration accepts its conditions, including lifting the naval blockade, unfreezing Iranian assets, and ending the war “on all fronts.” Oil flows through Hormuz reached 33.7 million barrels this week, putting exports roughly on track with the previous week’s levels. Oil markets have remained volatile this week amid mixed signals over peace prospects, signs of recovering Middle East energy flows, and speculation that the US could restrict diesel exports. Brent crude remained more than 1% higher for the week.

Brent crude pared earlier losses to trade around $106 a barrel on Friday as investors remained cautious over the prospects for a US-Iran agreement, given that previous negotiations have repeatedly appeared close to a breakthrough before collapsing. US and Iranian negotiators have been exploring a phased arrangement that could reopen the Strait of Hormuz, potentially involving Tehran restoring access through the strategic waterway while Washington lifts its blockade of Iranian ports. However, a White House official said President Donald Trump remained open to talks but maintained that the US was under no pressure to negotiate, citing the strength of its sanctions campaign and blockade. Brent crude remained more than 2% higher for the week, reflecting continued supply concerns linked to the conflict.

Brent crude fell toward $105 per barrel on Friday, snapping a two-day rally amid reports that the US and Iran were considering a phased deal that could reopen the Strait of Hormuz and lift a US blockade on Iranian ports. Efforts to reach a breakthrough were reportedly underway on the sidelines of the UN General Assembly, with Qatari officials mediating the talks. Iran has maintained that it must retain control over Hormuz and would not accept a deal unless the US eases military pressure and removes its blockade. Meanwhile, a White House official said President Donald Trump remained open to talks with Iran but stressed that the US had little need to negotiate given its strong position following the sanctions campaign and blockade. Elsewhere, tensions in the Middle East escalated after Iran-aligned Houthi militants in Yemen launched missiles toward Saudi cities, including Yanbu and Taif. Brent prices are on track to gain more than 2% for the week.