Oil prices inched higher on Friday, with WTI crude futures trading just below $98 per barrel. However, the benchmark remained on course for its steepest weekly drop in nine months, down about 12% for the week.
The modest rebound came amid cautious optimism that the conflict in the Middle East may be approaching a resolution. US and Iranian delegations are scheduled to meet in Pakistan on Saturday, and Israel has agreed to hold talks with Lebanon’s government, developments that have raised hopes for de-escalation.
US President Trump said he was “optimistic” about the prospects for a deal, while simultaneously warning Tehran over proposed transit fees in the Strait of Hormuz. Despite these diplomatic signals, the strait remains largely closed, and reports suggest Iran is weighing plans to charge vessels for passage.
Supply concerns were further stoked by Saudi Arabia, which reported that recent attacks on its oil infrastructure have reduced production capacity by roughly 600,000 barrels per day and cut throughput on the East–West Pipeline by about 700,000 barrels per day.
