Crude Oil Prices Decline, Brent Hovers Below $106
Oil prices fell Friday as signals that Iran is open to a negotiated agreement with the United States eased some geopolitical risk in markets, while improving US-China trade relations also weighed on crude prices.
International benchmark Brent crude futures for November delivery traded at $105.70 a barrel, down 0.8% from the previous close of $106.60. US benchmark West Texas Intermediate (WTI) crude futures for November delivery fell 1.6% to $93.10 a barrel from $94.61.
Iranian President Masoud Pezeshkian, speaking to Fox News in New York on the sidelines of the 81st UN General Assembly, said Iran does not want war with the US and is ready to reach an agreement through negotiations.
“We do not choose war. The war was imposed on us, and we are not seeking war,” Pezeshkian said, adding that Tehran remains willing to move forward with an agreement reached with US President Donald Trump.
Pezeshkian also said it was up to Washington to decide whether to end the war.
The comments added to expectations that diplomatic efforts could ease tensions between Tehran and Washington, potentially reducing the geopolitical risk premium in oil prices.
Iranian Foreign Minister Abbas Araghchi also said Friday that Tehran had proposed a seven-day plan aimed at ending the conflict, reopening the Strait of Hormuz and restarting negotiations over its nuclear program. Under the proposal, Iran would reopen the waterway under certain conditions, according to reports.
Meanwhile, signs of improving US-China trade relations are also weighing on oil prices.
Chinese President Xi Jinping said the two countries had agreed on a “new trade arrangement” during his meeting with Trump at the White House.
The agreement follows talks between the countries’ economic delegations to extend an interim trade truce, due to expire Nov. 10, until January 2027.
Expectations of easing trade tensions between the world’s two largest economies are reducing concerns over global growth and limiting demand for commodities seen as safe havens amid geopolitical and trade uncertainty, further pressuring oil prices.
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