Oil prices declined on Friday, reversing gains recorded during the previous two sessions, as investors assessed developments in US-Iran relations, continued security risks in the Persian Gulf and recovering production among OPEC members.
Brent crude futures fell 0.1% to $95.71 per barrel at 04:36 GMT, while US West Texas Intermediate (WTI) futures declined 0.4% to $88.38 per barrel.
Brent was heading towards a weekly loss of 2.4%, following a 16% decline in the preceding week. WTI was on course to fall 2.5%, after dropping 13% the previous week.
Despite the recent declines, Brent remained approximately 60% higher since the beginning of 2026.
US-Iran Negotiations Remain Uncertain
The latest movements in oil prices followed comments from US President Donald Trump indicating that Washington no longer considered a diplomatic agreement with Iran necessary.
In a Truth Social post on Thursday, Trump said the United States had established financial leverage over Tehran and claimed to have secured control of the Strait of Hormuz, a major international shipping route for oil and other energy products.
Trump also instructed Vice President JD Vance to shift his attention towards domestic policy matters rather than continuing negotiations with Iran.
The statements followed earlier expectations that diplomatic discussions could contribute to reducing regional tensions and restoring energy shipments.
Washington has indicated that its naval blockade affecting Iranian trade and oil exports will remain in place, alongside existing economic sanctions.
The developments have added uncertainty to the outlook for commercial shipping through the Persian Gulf, where maritime security remains an important factor for global energy markets.
Shipping Attacks Maintain Pressure on Gulf Energy Routes
Security concerns continued following reports of renewed attacks by Yemen’s Iran-backed Houthi movement against infrastructure in Saudi Arabia and strikes involving oil tankers operating in the Gulf.
According to risk consultancy Verisk Maplecroft, 36 confirmed attacks against commercial vessels were recorded across the Persian Gulf, Strait of Hormuz and Gulf of Oman during October.
The figure represented the highest monthly total since the conflict began.
Further attacks on vessels east of the Strait of Hormuz have highlighted the continuing risks facing commercial shipping in the region.
Iran has also maintained its position in nuclear negotiations, with the secretary of the country’s Supreme National Security Council ruling out the removal of enriched nuclear material from Iran.
The combination of military activity and unresolved diplomatic disagreements has complicated efforts to establish more predictable conditions for regional energy transportation.
OPEC Production Recovers to 27.16 Million Barrels per Day
On the supply side, OPEC crude oil production increased by 1.96 million barrels per day in October, reaching 27.16 million barrels per day.
The increase brought output closer to the pre-war level of 28.63 million barrels per day recorded in February.
Saudi Arabia accounted for a substantial proportion of the recovery, raising production to 10.56 million barrels per day from 8.37 million barrels per day in September.
The increase in OPEC output has contributed to expectations of greater crude availability, despite continued uncertainty surrounding regional shipping routes.
However, analysts at ANZ cautioned that the production recovery remains exposed to potential disruption.
The bank noted that restored supply depends partly on alternative logistical arrangements rather than fully secure maritime transportation routes.
As a result, further interruptions to shipping or energy infrastructure could affect the volume of crude reaching international markets.
Russian Supply Risks Add to Market Uncertainty
ANZ also identified risks affecting Russian oil production and exports as Ukraine continued attacks targeting the country’s energy infrastructure.
Damage to production, processing or transportation facilities could affect Russian supply availability, adding another variable to the global oil market outlook.
The potential impact of these developments remains dependent on the scale of infrastructure disruption and the ability of producers to maintain or restore operations.
With Brent and WTI heading for a second consecutive week of declines, market participants were assessing the balance between recovering crude production and continuing risks to international supply routes.
Developments in US-Iran diplomatic relations, shipping conditions around the Strait of Hormuz and the availability of Middle Eastern and Russian oil are expected to remain central factors influencing prices.