Oil slips on Pakistan-led push for U.S.-Iran talks
Crude fell after a report said Pakistan is seeking to revive U.S.-Iran negotiations with Chinese support, even as Middle East fighting keeps weekly gains intact.
Oil prices retreated on Friday after a report said Pakistan is trying to open a channel to restart talks between the United States and Iran, with backing from China. The move briefly eased some of the war premium that has built into crude this week, even as the wider conflict in the Middle East remains severe.
Brent and U.S. crude both finished lower on the session after solid gains earlier in the week. Brent settled at $96.78 a barrel, while West Texas Intermediate ended at $89.31. Despite Friday’s decline, both benchmarks were still headed for a strong weekly advance.
Diplomatic signals hit the market
The report pointed to a possible diplomatic opening at a moment when energy traders are focused on the risk of disruption to Gulf supply routes. A Pakistani government official said China was unhappy with attacks affecting Gulf states and pressure on the Strait of Hormuz, which is critical for global oil shipments.
That route has become a central market concern because any lasting threat to tanker traffic could tighten supplies quickly. Even without a formal closure, the prospect of interference in the strait has been enough to keep traders bidding up crude during the week.
War risk still dominates trading
The pullback on Friday did not erase the broader war-driven rally. U.S. crude was up about 8% for the week and Brent nearly 10%, reflecting mounting anxiety over the conflict’s spread and its possible effect on exports from the region.
Overnight, the U.S. military continued strikes in Iran for a 13th straight night, targeting military command centers, drone storage, communications and maritime surveillance sites. Centcom said the operations were meant to reduce the threat to civilian shipping in and around the Strait of Hormuz.
The military also said the waterway remained open and that commercial vessels were still able to move through it with U.S. support. That message offered some reassurance to the market, but the overall tone remained cautious as investors weighed whether diplomatic efforts can slow the escalation.
Trump separately told Axios he was considering a major strike on Iran, adding to the sense that the conflict could intensify further. For oil markets, the immediate issue is not just current damage but the risk that the fighting could spread deeper into the region’s export and shipping infrastructure.
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