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

Oil prices fell again on Friday as concerns over disruptions in Middle Eastern supply chains eased, with investors looking forward to the results of the upcoming US-Iran nuclear negotiations in Oman.

Brent crude futures decreased by 50 cents, or 0.74%, to $67.05 per barrel, following a 2.75% decline in the previous session.

Meanwhile, West Texas Intermediate crude dropped by 52 cents, or 0.82%, to $62.77 per barrel, after a 2.84% decrease on Thursday, according to Reuters.

Both crude types are on track to record their first weekly decline in over a month, down more than 3% from their highest levels in nearly six months, reached in late January when former President Donald Trump threatened military action against Iran.

This decline coincides with the announcement of negotiations in Oman, amid rising tensions following the bolstering of US forces in the region and regional efforts to prevent a military confrontation that could escalate into a wider conflict.

The Strait of Hormuz is a critical artery for global energy, with approximately one-fifth of the world's oil consumption transiting through it. Saudi Arabia, the UAE, Kuwait, and Iraq export most of their crude oil through this route, alongside Iran.