New Delhi — Oil prices fell Friday after reports that the United States and Iran were exploring a phased agreement that could reopen the Strait of Hormuz and ease concerns over supply disruptions tied to the conflict.
Brent crude slipped toward $105.60 a barrel after gaining more than 7% over the previous two sessions, while West Texas Intermediate traded below $94 a barrel.
Prices eased as investors weighed reports that discussions were taking place on the sidelines of the United Nations General Assembly and could eventually help restore oil flows through the Middle East.
Physical oil markets, however, remained tight. Reports indicated that buyers were paying record premiums for prompt barrels at Cushing, Oklahoma, the main U.S. crude storage hub.
Dated Brent has also been trading at a wide premium to futures in Europe, pointing to limited near-term supply. Brent remains more than 70% higher for the year, adding to global inflationary pressures.
The White House said President Donald Trump remained open to talks with Iran but stressed that the United States would not negotiate from a position of weakness.
Oil markets have remained highly volatile as the U.S.-Iran conflict approaches its seventh month. Shifting expectations over the war, along with speculation that Washington could restrict diesel exports, have contributed to sharp price swings.
Iran has maintained that it has sovereign control over the Strait of Hormuz, while the United States has called for conditions in the waterway to return to their pre-conflict status and has imposed a blockade on Iranian ports.
Saudi Arabia on Thursday intercepted missiles headed toward Yanbu and Taif, while Iran-backed Houthi militants carried out additional attacks against the kingdom.
About six ballistic missiles were reportedly intercepted. Saudi Arabia warned that further escalation by the Iran-backed militants in Yemen would be met with a firm response.
French President Emmanuel Macron also said France would deploy troops to help secure a Saudi energy facility. (Source: IANS)
