Oil prices finished the week higher on Friday after reversing earlier losses, as markets remained uneasy that U.S.–Iran talks had failed to materially reduce the risk of military escalation. Brent settled up 50 cents, or 0.7%, at $68.05 per barrel, while WTI gained 26 cents, or 0.4%, to $63.55.
The late-week rebound followed a sharp selloff on Thursday, when prices dropped nearly 3% after the U.S. and Iran agreed to hold talks in Oman, temporarily easing fears of supply disruptions. That optimism proved fragile. Talks concluded Friday without a breakthrough, with both sides returning to their capitals for consultations. Persistent disagreements over the scope of negotiations — nuclear issues versus missiles and regional influence — kept geopolitical risk firmly priced into crude. Roughly 20% of global oil consumption continues to flow through the Strait of Hormuz, leaving markets highly sensitive to any escalation.
Beyond geopolitics, broader fundamentals remained bearish. Analysts continue to point to expectations of global oversupply, Saudi Arabia’s fourth consecutive cut to official selling prices for Asian buyers, and soft risk sentiment across commodities. On the supply side, Kazakhstan’s exports through Russia may fall as much as 35% this month due to disruptions at the Tengiz field, while Russian crude discounts into China widened as sellers competed for demand.
Despite Friday’s bounce, crude prices ended the week under pressure, reflecting ongoing volatility driven by Middle East tensions colliding with surplus-driven macro headwinds.