Oil Prices Dip on Potential U.S.-Iran Deal
Oil prices edged lower on Friday as optimism over a potential US–Iran agreement eased geopolitical risk sentiment, although ongoing tensions in Lebanon capped losses.
International benchmark Brent crude traded at $98.80 per barrel, down around 0.6% from the previous close of $99.39. US benchmark West Texas Intermediate fell about 0.98% to $93.76 per barrel, compared with $94.69 in the previous session.
Oil prices declined in early trading as expectations grew that tensions in the Middle East could ease. US President Donald Trump said Thursday that Washington is “very close” to reaching a deal with Iran, as a two-week ceasefire between the two sides approaches its expiration.
“And if that happens, oil goes way down, prices go way down, inflation goes way down, and you won’t have nuclear holocaust,” Trump told reporters at the White House. “We’re getting along very well with the new Iranian leaders. It really is a regime change.”
Asked about the timing of the next round of direct talks, Trump said discussions could take place “maybe over the weekend.”
Trump also announced that Israel and Lebanon agreed to begin a 10-day ceasefire starting at 2100 GMT on Thursday following recent talks in Washington. Despite ceasefire efforts, renewed military activity in Lebanon continued to limit price declines.
The Israeli army carried out a large-scale demolition in the southern Lebanese town of Khiam on Friday, hours after the ceasefire took effect.
Israel launched an offensive on Lebanon on March 2, killing 2,196 people and injuring 7,185 others, according to official figures, while more than 1 million people have been displaced.
Ongoing military operations have complicated efforts toward a broader regional agreement, sustaining concerns over potential supply disruptions and preventing oil prices from falling further.
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