05.06.202614:32:32UTC+00Oil Falls, But Heads for Weekly Gain

WTI crude oil futures declined toward $91 per barrel on Friday, extending a 3.1% drop from the previous session, as investors monitored both US-Iran negotiations and ongoing uncertainty surrounding a potential ceasefire between Israel and Lebanon. President Donald Trump said talks with Tehran were “progressing well,” even as Iran-backed Hezbollah rejected a US-brokered ceasefire proposal.

Despite the latest pullback, oil prices remain more than 4% higher for the week, after renewed clashes between US and Iranian forces dampened hopes for an agreement that could restore crude flows through the Strait of Hormuz. Trump has since adopted a more optimistic stance, suggesting the strait could reopen quickly if Iran agrees to a memorandum of understanding to halt hostilities.

However, tangible progress has been limited, with Israel’s ongoing operations in Lebanon still a major obstacle to any breakthrough. Elsewhere, loadings at Oman’s Mina Al Fahal export terminal were briefly disrupted following an explosion, though operations later resumed.