Oil prices retreat despite Iran threats after US signals progress on a potential peace deal with Tehran.
West Texas Intermediate crude fell to $90.85 in early Asian trading Friday, paring three days of gains. The decline comes as investors weigh Iran’s warnings over the Strait of Hormuz against US President Trump’s remarks that a peace agreement with Iran could be finalized soon.
US crude inventories dropped by 7.974 million barrels last week, exceeding the 4.0 million-barrel consensus forecast. The drawdown follows a 3.327 million-barrel decline in the prior week, reinforcing expectations of tightening supply. OPEC maintained its demand growth outlook despite regional tensions.
Market reaction remained muted as traders balanced geopolitical risks with diplomatic optimism.