Oil Steadies After Volatile Week as US-Iran Talks Keep Diplomatic Hopes Alive

Oil prices steadied on Friday after a volatile week marked by renewed military tensions between the United States and Iran, as ongoing diplomatic talks between the two countries helped ease concerns over a broader disruption to global crude supplies.

Brent crude traded near $76 a barrel, recovering after falling more than 2% in Thursday's session, while U.S. West Texas Intermediate (WTI) held below $72 a barrel.

Latest Oil Prices:

WTI Crude $72.40 +0.32 +0.44%

Brent Crude $76.63 +0.33 +0.43%

Murban Crude $71.37 -2.20 -2.99%

WTI Midland $71.97 -0.27 -0.37%

Opec Basket $72.36 +1.99 +2.83%

Indian Basket $68.21 -2.50 -3.54%

Natural Gas $3.003 -0.009 -0.30%

Gasoline $2.994 -0.044 -1.46%

Heating Oil $3.536 -0.035 -0.99%

Despite the latest exchange of military strikes, a U.S. official said technical discussions between Washington and Tehran remain ongoing, signaling that both sides continue to pursue a diplomatic solution. However, uncertainty persists after U.S. President Donald Trump declared the previous ceasefire agreement "over," leaving the status of the truce unclear.

The latest escalation followed attacks on commercial vessels in the Strait of Hormuz, subsequent U.S. airstrikes inside Iran, and Iranian retaliatory attacks on U.S. military facilities in the Gulf. While tensions have intensified, both sides have so far avoided a full-scale conflict, with elements of the temporary agreement reportedly still in effect.

The disruption to shipping through the Strait of Hormuz has remained a key focus for energy markets. Slower tanker traffic has heightened concerns over potential supply bottlenecks, although traders are closely watching whether normal navigation resumes in the coming days.

Market participants are also awaiting crude allocation announcements from major Gulf producers, particularly Saudi Arabia, as they assess the outlook for regional oil exports.

"The market appears to view the latest U.S.-Iran tensions as a challenge to the ceasefire rather than a complete breakdown," said Warren Patterson, Head of Commodities Strategy at ING. He added that reports of continuing negotiations have reinforced expectations that diplomacy remains the preferred path for both sides.

Although tanker movements through the Strait of Hormuz slowed sharply this week, limited vessel traffic has continued, helping ease congestion that had built up inside the Gulf.

The U.S. Central Command (CENTCOM) said in a post on X that Iran does not control the Strait of Hormuz, adding that U.S. forces have assisted more than 800 vessels in safely transiting the strategic waterway since May.

Patterson noted that while oil tanker traffic has declined in recent days, volumes remain above levels recorded before the U.S. and Iran signed their memorandum of understanding in June, offering markets a measure of reassurance that energy flows have not been severely disrupted.