Global oil prices declined on Friday after Iran submitted a fresh negotiation proposal to the United States through Pakistani mediators, raising hopes for a possible diplomatic breakthrough in the ongoing regional crisis.
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Brent crude futures for July settled at $108.17 per barrel, down $2.23 or 2.02%, while West Texas Intermediate (WTI) crude futures fell $3.13, or 2.98%, to close at $101.94 per barrel.
According to Iran’s state news agency IRNA, Tehran sent its latest negotiation framework to Washington on Thursday via Pakistan, signaling a potential opening for talks aimed at ending tensions that have disrupted global energy markets.
Despite Friday’s decline, both major oil benchmarks remained on track for weekly gains. Brent crude posted a weekly increase of nearly 2.95%, after touching an intraday high of $126.41 on Thursday — its highest level since March 2022.
Oil markets have remained volatile since the US and Israel launched strikes on Iran in late February, triggering the closure of the Strait of Hormuz, a critical global shipping route responsible for nearly 20% of the world’s oil and liquefied natural gas supplies.
Although a ceasefire has been in effect since April 8, concerns persist over regional stability. The US Navy continues blocking Iranian crude exports, while Tehran maintains restrictions over the strategic waterway.
Market analysts said Iran’s proposal offered some optimism for de-escalation, but uncertainty remains high. Investors are closely monitoring diplomatic developments and any potential military escalation in the region.
US President Donald Trump was expected to receive a security briefing on possible new military options against Iran, though Washington has yet to announce any official action.
