Oil prices edged higher on Friday after comments from Iran’s foreign minister signaled that talks with the United States had begun on a constructive note. The tentative diplomatic progress helped lift prices, even as crude remained on course for its first weekly decline since mid-December 2025.
By 11:05 ET (16:05 GMT), Brent futures for April were up about 1% at $68.15 a barrel, while West Texas Intermediate gained 0.9% to $63.85. Despite the intraday rise, both benchmarks were tracking weekly losses of roughly 3.4% and 2%, respectively, as traders reduced geopolitical risk premiums and locked in profits after a strong multi-week rally.
U.S.–Iran talks show early progress
Officials from the U.S. and Iran met in Oman on Friday morning against a backdrop of heightened military tensions in the Middle East, following Washington’s deployment of additional naval assets to the region.
Iranian Foreign Minister Seyed Abbas Araghchi told local media the discussions had gotten off to a “positive and good start,” adding that further talks were planned. Markets welcomed the tone, hoping diplomacy could help cool tensions and reduce the risk of a wider conflict—an expectation that has weighed on crude prices this week.
Earlier disagreements over the scope of the talks had raised uncertainty, with Tehran rejecting U.S. calls to broaden discussions to include missile programs and insisting the agenda remain focused on nuclear issues. Araghchi later reiterated that the negotiations were “solely” centered on Iran’s nuclear ambitions.
Iran is a significant oil producer and sits adjacent to the Strait of Hormuz, a critical artery for global crude shipments. Any durable agreement could shift market focus back to fundamentals, where supply growth is expected to outpace demand. “In that environment, oil prices may struggle to find support without a clear catalyst,” said Nikos Tzabouras, senior market analyst at Tradu.com. Still, he noted that ongoing regional risks—especially around key shipping routes—could quickly revive upside pressure.
Weekly losses loom
Friday’s moves leave crude poised for its first weekly drop of the year and the first since mid-December 2025, following six consecutive weeks of gains. Prices were initially buoyed by supply concerns tied to extreme U.S. weather, outages in Kazakhstan, and fears of a broader Middle East conflict.
That support faded amid profit-taking and a broader pullback across commodities, as a resurgent dollar weighed on prices. The greenback is set for its strongest week in nearly a month after markets reassessed the outlook for U.S. monetary policy, viewing Kevin Warsh, President Donald Trump’s nominee for the next Federal Reserve chair, as less dovish than expected.
