Crude Oil Soars

Crude oil eased to around $92 a barrel on Friday after Iran called on the US to return to an interim peace deal that failed to end the war over the summer. A sequenced agreement would resemble the memorandum of understanding reached by the US and Iran in mid-June, which led to a fragile ceasefire that collapsed weeks later. Iran’s foreign minister proposed reopening the Strait of Hormuz and resuming nuclear talks with the US within seven days if the Trump administration accepts its conditions, including lifting the naval blockade, unfreezing Iranian assets, and ending the war “on all fronts.” Oil flows through Hormuz reached 33.7 million barrels this week, putting exports roughly on track with the previous week’s levels. Oil markets have remained volatile this week amid mixed signals over peace prospects, signs of recovering Middle East energy flows, and speculation that the US could restrict diesel exports. Despite recent gains, the US oil benchmark is down around 7.4% on the week.

Crude oil eased below $94 a barrel on Friday as US and Iranian negotiators explored a phased agreement to reopen the Strait of Hormuz. The proposed arrangement would reportedly involve Tehran restoring access through the strait while Washington lifts its blockade of Iranian ports. However, previous negotiations have repeatedly appeared close to a breakthrough before collapsing. A White House official said President Donald Trump remained open to discussions with Iran but argued that the US was under no pressure to negotiate given its sanctions campaign and blockade. Oil markets have remained volatile throughout the week, responding to mixed signals over prospects for peace, signs of recovering Middle East energy flows and speculation that Washington could restrict diesel exports. Despite recent gains, the US oil benchmark is down by around 2% this week, reflecting continued uncertainty over the potential reopening of the key shipping route and the broader supply outlook.

Crude oil fell to $93 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. Despite recent gains, the US oil benchmark remains on track to decline about 2% for the week.