Oil Prices Fall as Markets Look to Iran Truce, but Remain Wary of Attacks on Oil Facilities

Oil prices fell slightly on Friday as markets weighed the possibility of ​a truce between the US and Iran against the bombing of Saudi Arabia by ‌Houthi rebels after a week of price spikes.

Brent was down 74 cents, or 0.69%, to $105.85 a barrel at 0032 GMT, while West Texas Intermediate (WTI) was down 81 cents, or 0.86%, at $93.80 a barrel.

The sluggish opening was a contrast to ​a week of volatility when oil prices rose to a one-week high on Thursday. Both ​contracts rose as much as 5%. Brent settled up 3.4% and WTI was ⁠2.7% higher.

Brent notched its highest close since September 15. It was the first rise in days ​for WTI, which was down 13% over the prior six sessions and is down 6.42% for the ​week, compared with Brent’s 2.09% rise.

US and Iranian negotiators in New York are exploring a phased path out of war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran, sources close to ​the talks said this week.

“Diplomatic hopes are essentially helping oil prices weather the latest military strikes ​in the Middle East, with crude trading moderately softer despite the attacks,” said Tim Waterer, chief analyst at KCM Trade.

Since the ⁠war began at the end of February, around a fifth of the world’s oil and gas shipments have been curtailed, pushing up prices by 50% in March alone while driving liquefied natural gas buyers to look further afield for new, stable supplies of the super-chilled fuel.

On Thursday, Iranian President Masoud Pezeshkian said it ​was up to the ​US to choose when ⁠the Iran war will end.

"It's America that must choose whether it wants to end this or not," Pezeshkian said, responding to a question in an ​interview aired on Thursday on Fox News.

Saudi Arabia intercepted six ballistic missiles fired ​by Yemen's Iran-backed ⁠Houthis, thwarting attacks on the southern province of Taif and the Yanbu area on the Red Sea, the Saudi-led coalition in Yemen said.

Ongoing attacks “serve as a clear reminder that critical oil assets remain firmly in ⁠the firing ​line,” Waterer said.

Saudi Arabia is building up crude pumping volumes ​through its East-West Pipeline that runs to its Red Sea export hub of Yanbu, although crude tanker loadings have yet to ​resume, according to industry sources, satellite imagery and shipping data.

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