Global oil prices declined on Friday following reports that Iran has proposed renewed negotiations with the United States through Pakistan as a mediator.
According to the official IRNA, Tehran sent a message outlining its latest proposal on Thursday evening, although details of the offer were not disclosed.
The news prompted a sharp reaction in the oil market. The US benchmark, West Texas Intermediate (WTI), dropped by more than five per cent at one point, briefly slipping below the $100 per barrel threshold. It later recovered slightly to trade at around $101.7 by 1530 GMT.
Similarly, Brent crude saw an initial decline of over three per cent to $106.98 before rebounding to approximately $108.4.
Oil prices have surged significantly since the outbreak of the US-Israeli conflict with Iran in late February. At that time, Brent was priced near $73 per barrel, while WTI stood at around $67.
Despite Friday’s drop, underlying concerns about supply disruptions remain. The ongoing blockade of the Strait of Hormuz continues to hinder oil exports from the Gulf, keeping markets on edge. Analysts warn that prolonged delays in reopening the route could push prices higher.
Ole Hvalbye, an analyst cited by AFP, noted that each additional week of disruption could add roughly $5 per barrel to average prices.
Meanwhile, attention is also turning to the upcoming meeting of the OPEC and OPEC+ alliance, scheduled for Sunday. This will be the first gathering since the United Arab Emirates exited the group.
The alliance is expected to consider increasing production quotas by about 1,88,000 barrels per day. However, analysts suggest the decision may have limited impact, as key producers like Saudi Arabia, Kuwait and Iraq are currently unable to fully boost output due to the ongoing conflict.
As geopolitical tensions persist, investors remain focused on both diplomatic developments and supply constraints, which continue to shape the trajectory of global oil markets.
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