Brent Pulls Back as More US-Iran Talks Expected

Brent crude oil futures slipped to $104.4 per barrel on Friday, reversing earlier gains and snapping a four-session winning streak as hopes of diplomatic progress between the US and Iran improved sentiment. Reports indicated Iranian Foreign Minister Abbas Araghchi was expected to arrive in Islamabad, with sources suggesting a high likelihood of a breakthrough in negotiations involving mediators such as Pakistan. Despite the pullback, oil remains on track for a weekly gain of about 14%. Markets continue to be influenced by US policy signals, including President Donald Trump’s continuation of a naval blockade on Iranian ports, which has restricted crude exports from the Persian Gulf since the conflict began. The blockade remains a key obstacle in negotiations. A sanctioned tanker carrying Iranian oil was also seen attempting to leave the Strait of Hormuz, highlighting ongoing tensions in the vital shipping route that has seen sharply reduced flows since the war began.

Brent crude futures rose above $106 per barrel on Friday, on track to gain nearly 18% for the week as stalled US-Iran peace negotiations and the continued closure of the Strait of Hormuz fueled supply concerns. Reports indicated that President Donald Trump’s Truth Social posts, along with his decision to maintain a naval blockade of Iranian ports, have complicated prospects for renewed negotiations with Tehran. In a post on Thursday, Trump said he had ordered the US Navy to “shoot and kill” vessels laying mines in the strait, while US forces also boarded a supertanker carrying Iranian oil in the Indian Ocean. Meanwhile, the US-Iran ceasefire has been extended indefinitely as Washington awaits a new formal proposal from Tehran, while the truce between Israel and Lebanon has also been prolonged by three weeks. The ongoing disruption has led to a sharp decline in shipments from major Middle Eastern oil and gas producers, substantially tightening global supply.

Brent crude futures climbed more than 4% to around $106 per barrel on Thursday, marking the 4th staright session of gains, as Middle East hostilities escalated, the Strait of Hormuz remained closed, and no clear timeline emerged for the resumption of talks. Air defense systems were reportedly activated in parts of Tehran today amid signs of hostile aerial activity. Earlier, US President Trump ordered the US Navy to target any vessels laying mines in the Strait and pledged to intensify efforts to secure the waterway. Ceasefire talks were extended indefinitely as the US awaited a new formal proposal, while the blockade remained in effect. Iran signaled no immediate willingness to negotiate under continued US naval restrictions on its ports. The standoff has already led to US interceptions of Iranian tankers, while Tehran has tightened its control over the Strait of Hormuz. The disruption has curtailed flows from key Gulf producers, further tightening global oil supply.