Brent Crude Near $96

Brent crude futures swung between gains and losses on Friday to trade near $96 per barrel, and the benchmark remained on track for a large weekly decline. The moves come amid cautious optimism that the war in the Middle East could be nearing an end. US and Iranian delegations are set to meet in Pakistan on Saturday, while Israel has agreed to hold talks with Lebanon’s government, raising hopes for de-escalation. US President Trump said he was “optimistic” about a potential deal, even as he warned Tehran over proposed transit fees in the Strait of Hormuz. Despite this, the Strait of Hormuz remains largely closed, with reports indicating that Iran is considering charging ships for passage. Adding to supply concerns, Saudi Arabia said attacks on its oil facilities have reduced production capacity by around 600,000 barrels per day and cut throughput on the East-West Pipeline by approximately 700,000 bpd. On the week, the US oil benchmark is down about 12%.

Brent crude futures climbed above $96 per barrel on Friday as Israeli strikes on Lebanon and the ongoing closure of the Strait of Hormuz strained diplomatic efforts, but prices were still on track to drop more than 10% for the week after the US and Iran agreed to a two-week ceasefire. Israeli Prime Minister Benjamin Netanyahu maintained that operations in Lebanon fall outside the scope of the US-Iran truce, although Washington has scheduled talks next week with Israel and Lebanon to address broader ceasefire negotiations. Meanwhile, US President Donald Trump warned Iran over imposing transit fees in Hormuz, criticizing its handling of oil flows. The crucial waterway remains largely closed as shipowners wait for clearer guidance on access. Elsewhere, Saudi Arabia said its oil production capacity has been reduced by roughly 600k barrels per day following attacks on energy facilities, while a major pipeline designed to bypass the Strait of Hormuz was also struck.

Brent crude futures extended gains on Thursday, rising more than 4% to trade above $99, partially reversing a nearly 13% plunge in the previous session, its steepest single-day drop since 2020. Investor concerns over the fragility of the ceasefire intensified, as both the US and Iran accused each other of violating the agreement. Ongoing Israeli operations against Hezbollah in Lebanon also threatened to undermine the deal, with Iranian officials insisting that Lebanon is covered under the ceasefire terms. Meanwhile, the Strait of Hormuz remained effectively closed, with Tehran reportedly requiring military approval for vessel passage. In the first 24 hours of the ceasefire, only one oil products tanker transited the strait, according to Reuters. The near shutdown of Hormuz, which handles around 20% of global oil and gas flows, has triggered one of the most severe disruptions in energy markets in recent years.