Oil Prices Set for Big Weekly Fall

WTI crude oil futures traded around $96 a barrel on Friday, trimming earlier gains of nearly 3%, as renewed hopes emerged that the US and Iran could reach a diplomatic agreement. US Secretary of State Marco Rubio said there had been “slight progress” in mediated talks with Iran. Tehran is currently reviewing the latest US proposal delivered through Pakistan, although no timeline has been provided for an official response. Despite the renewed optimism, uncertainty persists over whether the conflict can be resolved and whether the Strait of Hormuz can fully reopen, leaving investors highly sensitive to mixed signals from both sides. Even so, WTI futures remain down more than 4% for the week, as markets continue to price in the possibility that the opposing parties may ultimately reach an agreement.

WTI crude futures rose above $98 per barrel on Friday after reports indicated that Iran’s Supreme Leader ordered the country’s enriched uranium reserves to remain inside Iran, complicating ongoing peace negotiations as dismantling Tehran’s nuclear program remains a central US demand. Iran is also reportedly working with Oman on a framework for a permanent toll system that would formalize its control over maritime traffic through the Strait of Hormuz. However, President Donald Trump rejected the proposal, insisting the waterway should remain open, free, and without toll charges. Despite Friday’s gains, WTI futures were still down more than 3% for the week amid optimism that the conflicting parties could eventually reach an agreement. US Secretary of State Marco Rubio said there were “some encouraging signs” surrounding a possible deal with Iran, adding that Pakistani mediators are expected to visit Tehran as Iranian officials review Washington’s latest proposal.

WTI crude futures fell more than 2% in afternoon trading after climbing as much as 3% earlier in the session, as investors grew increasingly hopeful that the conflict involving Iran could ease. US Secretary of State Marco Rubio said there were “some encouraging signs” of a potential agreement with Iran, according to the Financial Times. Rubio added that Pakistani mediators are expected to travel to Iran while Tehran reviews Washington’s latest proposal. Earlier, Reuters reported that Iran’s Supreme Leader had directed that the country’s near-weapons-grade uranium should not be sent abroad, hardening Tehran’s stance on one of Washington’s key demands in the negotiations. Despite today’s pullback, oil prices remain nearly 50% above pre-war levels, supported by ongoing supply tightness. In the United States, nearly 10 million barrels were withdrawn from the Strategic Petroleum Reserve last week, marking the largest release on record.