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Oil prices down as US–Iran deal hopes ease supply fears

By The South Asia Times

DUBAI - Global oil prices fell sharply on Friday, retreating from recent highs as renewed optimism over a potential agreement between the United States and Iran eased concerns about prolonged supply disruptions in the Middle East.

Brent crude dropped more than 3% to around $96 per barrel, while US benchmark West Texas Intermediate (WTI) declined roughly 3.6% to near $91. The pullback followed a surge in the previous session, when prices climbed close to $100 amid escalating geopolitical tensions.

Market sentiment shifted after US President Donald Trump said Washington was “very close” to reaching an agreement with Tehran, adding that further talks could take place over the weekend. Analysts say expectations of a deal have reduced fears of supply shocks, particularly around key shipping routes.

Additional pressure on prices came after reports of a ceasefire agreement between Israel and Lebanon, raising hopes of broader regional de-escalation.

Despite the decline, oil markets remain volatile, with traders closely watching developments in the Strait of Hormuz and the outcome of US–Iran negotiations, which are seen as critical to global energy stability.