Oil Prices Decline Ahead of US-Iran Nuclear Negotiations in Oman

Oil prices experienced another decline on Friday, driven by reduced concerns over potential supply disruptions in the Middle East, as investors look ahead to the forthcoming US-Iran nuclear discussions in Oman.

Brent crude futures fell by 50 cents, or 0.74%, settling at $67.05 per barrel, following a drop of 2.75% in the previous trading session.

Similarly, West Texas Intermediate crude decreased by 52 cents, or 0.82%, to $62.77 per barrel, after a decline of 2.84% on Thursday, according to Reuters.

Both crude benchmarks are on track for their first weekly decline in over a month, having fallen more than 3% from their peak levels in nearly six months, which were recorded in late January when US President Donald Trump threatened military action against Iran.

This price drop coincides with the announcement of negotiations in Oman, amid escalating tensions following the US's decision to bolster its military presence in the region, and ongoing efforts to avert a military conflict that could lead to broader hostilities.

The Strait of Hormuz remains a critical passage for global energy, with approximately one-fifth of worldwide oil consumption transiting through it. Major oil exporters such as Saudi Arabia, the UAE, Kuwait, and Iraq, along with Iran, rely heavily on this route for their crude shipments.