Oil prices settled higher on Friday as investors grew increasingly concerned about the lack of sufficient progress in talks between representatives of Iran and the United States aimed at averting military action.
اضافة اعلان
Brent crude futures rose by 50 cents, or 0.74%, to $68.05 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 26 cents, or 0.41%, to $63.55 per barrel.
John Kilduff, partner at Again Capital, said: “We are seeing ongoing volatility regarding the situation in Iran. Conditions improve one day, or even for an hour, then deteriorate the next. There is persistent concern about the current situation with Iran.”
Iranian state television reported in the afternoon that the talks had concluded. Iranian Foreign Minister Abbas Araghchi said the negotiating teams would return to their respective countries for consultations and that talks would resume.
Before the talks began, the lack of agreement on an agenda raised investor concerns over geopolitical risks. Iran wanted the discussions to be limited to the nuclear file, while the United States sought to address Iran’s ballistic missile program and its support for armed groups in the region.
Any escalation in tensions between the two countries could disrupt oil flows, as about one-fifth of global oil consumption passes through the Strait of Hormuz between Oman and Iran.
Saudi Arabia, the United Arab Emirates, Kuwait, and Iraq export most of their crude oil through the strait, as does Iran, a member of OPEC.
If the talks reduce the likelihood of conflict in the region, oil prices could decline further.
Analysts said prices fell on a weekly basis due to broad-based selling in markets and continued expectations of an oversupply.
On Thursday, Saudi Arabia cut the official selling price of its Arab Light crude to Asia for March to its lowest level in nearly five years, marking the fourth consecutive monthly reduction.
— Reuters
