Crude oil traded near $90 a barrel on Friday, down 13% for the week — its sharpest weekly drop since mid-April — as rising hopes for a diplomatic breakthrough in the Middle East eased fears of supply disruptions. US President Donald Trump held talks on de-escalation with Qatar’s Emir, Sheikh Tamim bin Hamad Al-Thani, while Tehran is reportedly reviewing proposals from mediators on its nuclear programme. Any resolution to the conflict could pave the way for increased crude exports from the region.
Nonetheless, major hurdles persist. Iran is insisting on the lifting of the US naval blockade, the easing of sanctions and the unfreezing of assets as conditions for fully reopening the Strait of Hormuz. At the same time, attacks on oil tankers have continued, with UKMTO data showing incident levels still close to record highs.
