Oil Prices Fall As US-Iran Talks Raise Hopes Of Strait Of Hormuz Reopening

Oil prices fell on Friday as reports of possible US-Iran talks raised hopes of a phased agreement to reopen the Strait of Hormuz, potentially easing concerns over supply disruptions linked to the conflict.

Brent crude fell towards $105.60 a barrel after gaining more than 7 per cent over the previous two sessions, while West Texas Intermediate traded below $94.

Markets reacted to reports that the US and Iran were discussing the issue on the sidelines of the United Nations General Assembly.

Physical markets, however, remained under severe supply pressure. Traders reportedly paid record premiums for prompt barrels at Cushing, Oklahoma, the main US storage hub.

In Europe, Dated Brent traded at a wide premium over futures, highlighting tight near-term supplies.

Brent remains more than 70 per cent higher this year, adding to pressure on global inflation.

The White House said US President Donald Trump remained open to talks with Iran but stressed that Washington would not negotiate from a position of weakness.

Oil markets continue to face volatility as the US-Iran conflict approaches its seventh month.

Shifting expectations over the war and speculation over possible US restrictions on diesel exports have added to uncertainty.

Iran continues to assert sovereign control over the Strait of Hormuz, while the US has demanded a return to pre-conflict conditions and imposed a blockade on Iranian ports.

Saudi Arabia intercepted missiles heading towards Yanbu and Taif on Thursday, while Iran-backed Houthi militants launched further attacks against the kingdom.

French President Emmanuel Macron said France would deploy troops to help secure a Saudi energy facility.

Also Read: Delhi Weather: Rain Likely From Saturday As IMD Forecasts Thunderstorms Over Weekend