Oil prices fell by around 11% over the week as expectations of a ceasefire in the Middle East eased immediate supply concerns, although ongoing tensions kept markets volatile.
International benchmark Brent crude traded at $96.44 per barrel at 13.30 local time (1030 GMT), down 11.5% from last Friday’s close of $109.03.
US benchmark West Texas Intermediate declined 11.6% to $98.62 per barrel, compared with $111.54 a week earlier.
- Diplomacy pressures prices
Oil markets remained sensitive to developments in the Gulf region, a key hub for global energy flows, as traders weighed disruption risks against signs of diplomatic progress.
Talks involving the US and Iran have intensified in recent days, with officials exploring a potential 45-day ceasefire that could pave the way for a longer-term agreement, according to media reports.
US President Donald Trump extended a deadline for Iran while warning that failure to reach a deal could lead to strikes on key infrastructure, keeping pressure on negotiations.
Iran, meanwhile, warned it would respond to any attacks by Israel or Gulf countries, raising concerns that tensions could spread across major energy-producing and transit regions.
- Early gains driven by deadline tensions
Prices rose earlier in the week as markets focused on Washington’s deadline for Iran to reopen the Strait of Hormuz, a critical route for global oil shipments.
Trump warned that Iranian infrastructure could be targeted if no agreement was reached, while reports indicated that Israel had prepared potential energy-related targets.
Prices retreated midweek after Trump announced a two-week conditional ceasefire linked to the reopening of the Strait of Hormuz, easing immediate supply concerns and briefly pushing Brent below $100 per barrel.
Iranian officials said safe passage through the strait would be maintained during the period if attacks ceased, signaling a temporary de-escalation.
- Disruptions persist despite truce
Despite the ceasefire, tanker traffic through the Strait of Hormuz remained below normal levels, with reports of stranded vessels and tighter maritime controls.
At the same time, Israeli strikes in Lebanon added to regional uncertainty, reinforcing concerns over a potential widening of the conflict.
Prices found some support later in the week as supply risks resurfaced.
Attacks on energy infrastructure in Saudi Arabia disrupted operations at several facilities, while constraints on tanker traffic in the Strait of Hormuz continued to limit flows to global markets.
The combination of fragile diplomacy and persistent geopolitical risks maintained a risk premium in oil prices, despite the overall weekly decline.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr
