Brent crude settled at $93.09 per barrel, down $1.94 (2.0%), following a 2.8% decline in the previous session. U.S. West Texas Intermediate (WTI) crude fell $2.50 (2.7%) to close at $90.54 per barrel after dropping 3.1% on Thursday.
Market sentiment improved as traders interpreted recent developments as signs of de-escalation despite the absence of a formal agreement between Washington and Tehran. While negotiations remain unresolved, investors appeared increasingly focused on the reduced likelihood of a significant expansion of the conflict.
Earlier concerns about a potential disruption to oil exports from Oman also eased after Petroleum Development Oman stated that operations at Mina al Fahal, the country’s primary crude export terminal, were unaffected despite reports of an explosion near loading facilities. Oman typically exports between 800,000 and 900,000 barrels of crude oil per day through the terminal.
Despite Friday’s decline, both crude benchmarks still posted their first weekly gains in three weeks. Brent rose 1.2% for the week, while WTI advanced approximately 3.6%, supported by earlier gains tied to continued restrictions on shipping through the Strait of Hormuz and ongoing uncertainty surrounding U.S.-Iran negotiations.
Although progress toward a broader regional settlement remains uncertain, market participants continue to monitor developments involving Lebanon and Hezbollah, as Iran has linked any agreement with Washington to a lasting ceasefire in Lebanon. Comments from President Trump expressing optimism about progress between Israel and Lebanon also contributed to the perception that regional tensions may be gradually easing.
At the same time, several factors continue to limit downside pressure on prices. OPEC maintained its forecast for global oil demand growth of 1.2 million barrels per day this year, while ongoing restrictions in the Strait of Hormuz continue to constrain global energy flows. However, weaker demand growth, particularly in China, along with alternative export routes and inventory availability, have helped prevent prices from moving significantly higher.
As a result, crude markets ended the week balancing signs of diplomatic progress against the reality of continued supply disruptions and unresolved geopolitical risks across the Middle East.