Oil prices fell on Friday, with Brent crude futures slipping below $94 a barrel and West Texas Intermediate sliding toward $91, as traders looked for signs of progress in U.S.-Iran negotiations that could ease the threat to shipping through the Strait of Hormuz. Both benchmarks dropped about 3% on the day, extending losses from the prior session.
Even with Friday's decline, crude held on to weekly gains, with Brent up roughly 3% and WTI more than 4% higher over the five sessions. The advance reflected a week of renewed clashes between U.S. and Iranian forces near the strait, which kept a risk premium baked into prices despite the day's pullback.
President Donald Trump struck an optimistic tone, saying talks with Tehran were progressing and that the waterway could reopen quickly under a memorandum to halt hostilities. Those hopes were tempered by the rejection of a U.S.-brokered ceasefire by the Iran-aligned group Hezbollah, leaving the diplomatic picture uncertain.
Demand-side worries also weighed on the market. Chinese crude imports fell to their lowest level in about a decade, reflecting softer refinery activity and weaker consumption in the world's largest oil importer, a signal that has tempered expectations for global demand growth.
Supply jitters lingered in the background after loadings at Oman's Mina Al Fahal export terminal were briefly delayed following an explosion, though operations later resumed. Such disruptions, even when short-lived, can ripple through a market already on edge over the security of Gulf energy flows.
With roughly a fifth of the world's seaborne oil passing through the Strait of Hormuz, traders remain acutely sensitive to each twist in the standoff. Further escalation could quickly reverse Friday's losses, while a credible move toward de-escalation would likely drain the premium that has supported prices.