Oil prices fell due to US-Iran contacts

Oil prices completed the last trading day of the week with a decline, as diplomatic contacts between the USA and Iran intensified and expectations that the Strait of Hormuz could be reopened grew stronger. The barrel price of Brent oil decreased by $2.28 to $104.32 on Friday, and West Texas Intermediate (WTI) crude oil decreased by $2.20 to $92.41.

HORUZ NEGOTIATION BETWEEN THE USA AND IRAN

It was reported that US and Iranian negotiators holding talks in New York evaluated various options for a gradual exit from the war.

According to sources close to the talks, the plan on the agenda includes Washington lifting the economic blockade on Iran in exchange for Iran reopening the Strait of Hormuz.

Iran, on the other hand, gave the message that it would not step back regarding the nuclear program. A senior Iranian official said Tehran would not show flexibility regarding its nuclear program even if the United States accepts the proposal, which includes lifting the naval blockade of Iranian ports.

News of diplomatic contacts strengthened the expectation that the Strait of Hormuz could be reopened, putting downward pressure on oil prices.

WEEKLY PERFORMANCES SEPARATED IN BRENT AND WTI

While Brent oil closed at $104.32 with a 2.1 percent drop on Friday, WTI lost 2.3 percent of its value and fell to $92.41.

While the increase in Brent oil remained below 1 percent on a weekly basis, WTI decreased by approximately 8 percent.

The price difference between Brent and WTI also increased for the third day in a row, reaching its highest level since May. US gasoline futures lost nearly 4 percent of their value on Friday.

TWO-WAY RISK WARNING FOR OIL PRICES

Goldman Sachs announced that global oil demand decreased more than expected and pointed out two-way risks.

Goldman pointed out that the decline in demand poses a downside risk to oil prices. The bank predicted the Brent oil price forecast for the fourth quarter of 2026 as $90 per barrel and the WTI forecast as $83.