Global oil prices edged lower in early trading on Friday, capping a volatile week as optimism over potential de-escalation in the Iran conflict weighed on markets. Prices retreated after US President Donald Trump said negotiations with Tehran were progressing “very well” and announced a temporary pause in attacks on Iran’s energy infrastructure.
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Brent crude futures fell by 0.8% to $107.11 per barrel, while US West Texas Intermediate (WTI) dropped 0.88% to $93.65 per barrel. The decline followed strong gains in the previous session, when fears of escalating conflict pushed Brent up 5.7% and WTI up 4.6%.
Despite recent spikes, both benchmarks are now heading toward weekly losses, with Brent set for its first drop in six weeks and WTI declining for a second consecutive week. Analysts attribute the shift largely to expectations that tensions could ease in the near term.
Trump said he would halt strikes on Iran’s energy facilities for 10 days, framing the move as a step toward diplomatic resolution. The pause comes amid reports of a US proposal delivered to Tehran through Pakistan, though Iranian officials have reportedly criticised the plan as “one-sided and unfair.”
The president also noted that Iran had allowed several Pakistan-flagged oil tankers to pass through the strategic Strait of Hormuz as a goodwill gesture. The vital waterway typically handles about one-fifth of global oil and liquefied natural gas shipments.
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However, uncertainty remains high. The US has deployed additional troops to the Middle East, and discussions continue over possible military action targeting Iran’s key oil hub at Kharg Island.
According to International Energy Agency chief Fatih Birol, the crisis has disrupted roughly 11 million barrels per day of global oil supply, underscoring the market’s sensitivity to geopolitical developments.