Khaberni - Oil prices fell today, Friday, after news that Iran sent its latest negotiation proposals to the US via Pakistani mediators yesterday, however, they are still on track to achieve weekly gains as Tehran continues to close the Strait of Hormuz and the US Navy impedes the export of Iranian crude oil.
Brent crude futures for July delivery dropped 44 cents, or 0.4 percent, to $109.96 a barrel by 1225 GMT, and West Texas Intermediate crude futures fell $2.48, or 2.4 percent, to $102.59.
The Iranian Islamic Republic News Agency (IRNA) reported today, Friday, that Tehran sent its latest negotiation proposals with the United States to Pakistani mediators yesterday, Thursday.
Brent is still on track to achieve weekly gains of 4.5 percent, and West Texas Intermediate is also set to end the week up by 8.9 percent.
A Brent contract for June delivery recorded $126.41 a barrel before its expiration yesterday, Thursday, marking its highest level since March 2022.
Ole Hansen from Saxo Bank said, "The sharp course correction that occurred yesterday, Thursday, confirms that the market is gradually climbing but is exposed to the risk of a rapid descent upon any sudden news of calming situations, making conditions very difficult for traders."
Oil prices have taken an upward trajectory since the end of February when the United States and Israel launched attacks on Iran, leading to the closure of the Strait of Hormuz and disrupting about a fifth of global oil and natural gas shipments.
A ceasefire has been in effect between the two sides since April 8th.
Anwar Gargash, the diplomatic advisor to the President of the UAE, stated today, Friday, in a post on X that Tehran cannot be trusted in regard to any unilateral arrangements it undertakes in the strait or relied upon concerning the freedom of navigation there, especially after "its brutal aggression against all its neighbors."
Earlier yesterday, Thursday, a senior Iranian Revolutionary Guard official threatened to launch "painful and prolonged strikes" on American sites if Washington renewed its attacks on Iran, which initially drove oil prices up during the day before they declined.
A US official told Reuters that President Donald Trump received a briefing yesterday, Thursday, about plans to launch a series of new military strikes on Iran to force it into negotiations to end the conflict.
