Global crude prices fell slightly on Friday, halting a week of sharp spikes as markets weighed potential US-Iran truce negotiations against ongoing Houthi rebel bombings on Saudi Arabian energy facilities.
Brent crude dropped 87 cents, or 0.82%, to hit $105.73 a barrel. West Texas Intermediate fell $1.56, or 1.65%, settling at $93.05.
This minor price retreat follows a period of extreme volatility in 2026. Brent surged past $120 earlier this year after severe maritime blockades disrupted transit through the Strait of Hormuz.
Despite emerging diplomatic optimism regarding a phased agreement, traders remain highly cautious. The broader market continues to price in a significant geopolitical risk premium due to constrained regional availability.
Analysts warn that any breakdown in the current truce dialogue could trigger immediate upward price action, particularly given tighter-than-expected global inventories and the persistent threat to Middle Eastern infrastructure.
