Global oil prices eased on Friday, with Brent crude falling to around $98 per barrel, as optimism grew over a diplomatic breakthrough between the United States and Iran near the 50-day mark of the ongoing conflict. The decline reflects improving market sentiment after weeks of sharp volatility driven by supply disruptions in the Middle East.
The pullback followed remarks by Donald Trump, who signalled progress in talks with Iran and hinted that negotiations could take place soon. Markets reacted positively to the possibility of a ceasefire or temporary agreement that could ease tensions and restore disrupted oil flows.
Brent crude slipped by roughly 1–1.4% to hover near the $98 mark, while U.S. West Texas Intermediate (WTI) also declined to around $93–94 per barrel. The drop reverses part of the previous session’s gains and signals a cooling in energy markets after prices had surged above $100 amid fears of prolonged conflict.
Also Read: Brent Crude Trades Under $95 On Optimism Over US-Iran Ceasefire Extension
A key factor influencing prices is the potential reopening of the strategically critical Strait of Hormuz, a vital shipping route for global oil supplies. Trump indicated that Iran may be willing to accept conditions it had previously resisted, though there has been no official confirmation from Tehran, leaving some uncertainty in the market.
The easing of prices also coincides with a broader de-escalation narrative, including a temporary ceasefire between Israel and Lebanon. Analysts note that any sustained diplomatic progress involving Iran could significantly improve supply conditions, reducing upward pressure on crude prices.
Despite the decline, oil prices remain elevated compared to pre-conflict levels, reflecting ongoing risks in the region. Market participants caution that volatility is likely to persist, with crude prices highly sensitive to developments in negotiations and the broader geopolitical landscape.
Also Read: Brent Crude Crosses $110 Amid Trump’s New Hormuz Deadline And Supply Fears