Oil prices edged lower on Friday as traders monitored ongoing discussions between the United States and Iran, while continued military tensions in the Middle East remained a key factor influencing the market.
Brent crude fell by 74 cents, or 0.69%, to $105.85 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped 81 cents, or 0.86%, to $93.80 per barrel.
Despite Friday’s decline, oil prices remain near recent highs after strong gains in the previous session. On Thursday, Brent crude rose 3.4%, while WTI gained 2.7%, with both benchmarks reaching their highest levels in about a week.
Market activity was relatively calm at the start of Friday’s trading compared to the sharp price swings seen earlier in the week.
Investors are closely following reports of negotiations between Washington and Tehran in New York. According to sources familiar with the talks, both sides are discussing a phased plan that could help reduce tensions. The reported proposal includes the reopening of the Strait of Hormuz by Iran in exchange for the easing of U.S. economic sanctions.
At the same time, ongoing military tensions across the Middle East, including Houthi attacks on targets in Saudi Arabia, continue to create uncertainty in energy markets. Traders are weighing the possibility of diplomatic progress against the risk that regional conflicts could disrupt oil supplies and keep prices elevated.
