WTI Falls as US Heads to Talks, Hormuz Still Blocked

WTI crude oil futures eased to $94.7 per barrel on Friday, snapping a four-day winning streak, after the White House said it would send envoys to Pakistan, where Iranian officials are also expected, raising tentative hopes that stalled US-Iran talks could resume and eventually reopen the Strait of Hormuz. However, Iran struck a cautious tone, with reports suggesting no formal talks are currently scheduled during Foreign Minister Abbas Araghchi’s visit. The prospect of diplomacy reduced some of the geopolitical premium built into prices earlier in the week. Still, WTI added 13% during the week, the most since early March, as the key shipping route stays largely closed. The ongoing US naval blockade continues to restrict Iranian crude exports and remains a major obstacle to progress. Analysts note that even if the strait reopens, oil flows could take months to normalize, keeping supply tight and maintaining pressure on global energy markets.

WTI crude oil futures slipped below $94 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.

WTI crude futures rose above $97 per barrel on Friday, on track to gain more than 17% 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.