West Texas Intermediate (WTI) oil price remains subdued after registering over 5.5% losses in the previous day, trading around $85.00 per barrel during the Asian hours on Friday.
Crude oil prices declined following statements from US President Donald Trump indicating that a peace agreement with Iran could be finalized as early as this weekend
This diplomatic pivot comes on the heels of the President delaying planned military strikes, though he had previously warned that the US could target Iran’s energy infrastructure. While a final text has not yet been approved by either side, Iran’s semi-official Fars news agency reported that Tehran is likely to accept the deal. According to Trump, the agreement would safely reopen shipping lanes through the critical Strait of Hormuz and include firm commitments from Iran to forgo the development of nuclear weapons.
Despite the potential breakthrough, market traders remain cautious because fully normalizing global oil flows faces significant logistical hurdles. Even if a deal is struck, the energy sector must still navigate clearing naval mines from the strait, restarting idled production fields, and repairing vital facilities previously damaged by drone and missile attacks. The security situation in the waterway also remains clouded by conflicting reports.