Crude oil prices fell about 5% to around $88 per barrel on Friday after reports that Pakistan, backed by China, was working to revive negotiations between the United States and Iran, raising hopes for a diplomatic route to easing regional tensions. According to these reports, Chinese officials are increasingly worried that attacks on Gulf states and disruptions in the Strait of Hormuz are harming China’s economic interests.
Despite Friday’s pullback, crude oil remained up roughly 7% for the week, supported by a sharp escalation in hostilities across the Middle East. Overnight, US Central Command conducted its 13th consecutive night of strikes on Iran, targeting military infrastructure and maritime capabilities, and stated that the vital waterway remains open with American support.
At the same time, President Donald Trump warned that he was considering an unprecedented military response against Iran and vowed severe retaliation if Tehran backed additional Houthi attacks on commercial vessels in the Red Sea.
