Brent Crude Pares Losses

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.

Brent crude traded near $107 a barrel on Thursday, trimming a surge that peaked at over $108 amid signs that the US and Iran could be working to restore Persian Gulf exports. Reports suggested US and Iranian negotiators were exploring a deal to lift naval blockades on tankers crossing the Strait of Hormuz and ease US sanctions on Iran. Earlier, prices surged after Iran-allied Houthi militants in Yemen fired missiles at Saudi cities including Yanbu and Taif. Yanbu is a key oil export terminal on Saudi Arabia’s Red Sea coast. Saudi Arabia’s workaround for the Strait of Hormuz now carries war-risk insurance costs nearly as high as sending tankers through the strait. Only 10 commodity vessels transited Hormuz on Wednesday, below the 10-day moving average of 17. Meanwhile, the US Senate narrowly rejected a nonbinding measure demanding an end to the war with Iran.