Oil prices declined on Friday as reports that China was working to revive U.S.-Iran peace negotiations encouraged profit-taking after crude briefly traded above $100 per barrel earlier in the week. Despite the pullback, both Brent and WTI posted strong weekly gains as ongoing military conflict in the Middle East continued to threaten global energy supplies and key shipping routes.
Brent crude settled at $96.78 per barrel, down 3.88% on the day, while West Texas Intermediate (WTI) finished at $89.31 per barrel, down 3.12%. For the week, Brent advanced nearly 10% and WTI gained 8.27%, reflecting continued geopolitical risk despite Friday’s decline.
Markets remained focused on the conflict between the United States and Iran after missile exchanges, attacks on Saudi oil tankers in the Red Sea, and severely reduced tanker traffic through the Strait of Hormuz. Yemen’s Houthi forces continued threatening shipping through the Bab el-Mandeb Strait, creating additional concerns over disruptions to one of the world’s most important energy trade corridors.
While optimism surrounding renewed diplomatic efforts helped pressure prices lower, shipping activity through the Strait of Hormuz remained well below normal levels, underscoring that supply risks remain elevated. Analysts also warned that prolonged disruptions to Middle East oil exports could push crude prices significantly higher if tensions persist.