Crude oil held near $94 per barrel on Friday, pausing its recent rally amid reports that Washington and Tehran were weighing a phased agreement that could reopen the Strait of Hormuz and lift the US blockade on Iranian ports. Diplomatic efforts were said to be underway on the sidelines of the UN General Assembly, with Qatari officials mediating the discussions.
Iran has insisted on retaining control over the Strait of Hormuz and has signaled it would reject any deal that does not ease US military pressure and remove the blockade. For its part, the White House said President Donald Trump remained willing to engage in talks with Iran, but a senior official emphasized that the US saw little need to negotiate given what it views as a strong strategic position following its sanctions campaign and port blockade.
At the same time, tensions in the Middle East intensified after Houthi militants in Yemen, aligned with Iran, launched missiles toward several Saudi cities, including Yanbu and Taif. Despite recent price gains, the US crude benchmark remained on track for a weekly loss of about 2%.
