Oil Steadies, Heads for Weekly Gain

WTI crude oil futures held near $93 per barrel on Friday after falling 3.1% in the previous session, as investors looked for signs of progress in US-Iran negotiations while uncertainty persisted over a ceasefire between Israel and Lebanon. President Donald Trump said talks with Tehran were progressing well, despite Iran-backed Hezbollah rejecting a US-brokered ceasefire proposal. Oil prices remain more than 6% higher for the week after renewed clashes between US and Iranian forces dampened hopes for a deal that could restore flows through the Strait of Hormuz. Trump has since struck a more optimistic tone, saying the strait could reopen quickly if Iran agrees to a memorandum of understanding to halt hostilities. However, little concrete progress has emerged, with Israel’s continued operations in Lebanon remaining a key obstacle. Elsewhere, loadings at Oman’s Mina Al Fahal export terminal were temporarily delayed following an explosion, although operations later resumed.

WTI crude futures held around $93 per barrel on Friday after losing more than 3% in the previous session, weighed down by hopes that the US and Iran could still find a diplomatic solution to end the war and reopen the Strait of Hormuz. President Donald Trump has reportedly been hesitant to reengage in a full-scale war with Iran despite recent confrontations, and would only consider ending the current truce if Tehran kills American troops. Even so, the US oil benchmark is still up more than 6% for the week, as negotiations between Washington and Tehran have yet to show meaningful progress, while Israel’s ongoing military operations in Lebanon is becoming a key obstacle. Iran-backed Hezbollah rejected a US-mediated ceasefire proposal between Israel and Lebanon, although President Trump said the group had approached the White House to discuss ending the hostilities.

WTI crude futures extended losses to fall more than 3% to $92 per barrel on Thursday, snapping a three-day rally, as hopes for an agreement with Iran to end the conflict increased. The US said that Israel and Lebanon had agreed to a ceasefire, conditional on Hezbollah also halting its attacks. Tehran has made a ceasefire in Lebanon a condition for any peace deal with Washington. Lebanese President Aoun added that the ceasefire would come into force within 24 hours of all concerned parties approving it. Also, President Trump said on Wednesday that progress in negotiations with Iran could be achieved as early as this weekend. However, uncertainty about the end of the war persists and tensions in the region remain elevated. Iran said there had been no recent progress in talks with the US and Israel's Defence Minister said Israel will continue to strike Lebanon. Also, the US and Iran have exchanged strikes in recent days, while the conflict has spilled over into Bahrain and Kuwait.