Oil prices moved slightly lower during Asian trading on Friday and were on track for weekly losses, as expectations of easing tensions in the Middle East reduced the geopolitical risk premium that had supported the market in recent days.
As of 20:46 ET (00:46 GMT), Brent crude futures for May delivery fell 0.5% to $107.50 per barrel, while West Texas Intermediate (WTI) crude futures declined 0.7% to $93.82 per barrel.
Both benchmarks were set to record losses of more than 4% for the week.
Trump pauses attacks on Iran’s energy facilities for 10 days
U.S. President Donald Trump said he would suspend strikes on Iran’s energy infrastructure for 10 days following a request from Tehran.
Trump also said negotiations with Iran were “going very well,” raising hopes that diplomatic progress could help ease the conflict. Iranian officials, however, have taken a more cautious stance regarding the discussions.
In addition, media reports indicated that Iran is reviewing a 15-point peace proposal from the United States that outlines broad limits on Tehran’s nuclear and military programs in exchange for sanctions relief and potential steps toward lowering tensions.
These developments helped calm concerns about possible supply disruptions in the Middle East, particularly around the Strait of Hormuz, a vital shipping route through which a significant share of the world’s oil supply passes.
Oil markets have seen sharp swings in recent weeks, with prices initially surging as tensions escalated between the United States, Israel and Iran.
However, repeated indications that tensions could ease have prompted pullbacks in prices as traders reassess the likelihood and duration of potential supply disruptions. Earlier this week, crude prices dropped sharply after Trump postponed previously planned strikes.
“Any credible de escalation could trigger a renewed risk on move, but for now uncertainty remains elevated,” MUFG analysts said in a recent note.
U.S. inventory data adds pressure to prices
Adding to downward pressure this week, U.S. crude inventory data from both industry and government sources suggested a looser supply environment.
Figures from the American Petroleum Institute showed crude stockpiles increased by about 2.3 million barrels last week.
Meanwhile, official data from the Energy Information Administration showed crude inventories rising by 6.9 million barrels to roughly 456.2 million barrels — the highest level since June 2024.