Oil prices dip as traders weigh potential US-Iran deal against ongoing strikes and lower-than-expected US inventory drawdowns.
West Texas Intermediate crude fell to $92.45 in early European trading Friday, pressured by optimism over a possible US-Iran ceasefire deal. The Trump administration awaits Iran’s response to a proposal to reopen the Strait of Hormuz, though Tehran has not signaled acceptance of terms involving uranium enrichment restrictions.
US crude inventories dropped by 2.314 million barrels last week, missing the 2.8 million-barrel consensus forecast and down from a 6.233 million-barrel decline the prior week. Despite ceasefire hopes, tensions persist after Thursday’s exchanges of fire, with Iran accusing the US of violating the truce.
Market reaction remains cautious as uncertainty over Middle East stability counters short-term supply optimism.