Oil prices slipped slightly during Asian trading on Friday and were heading toward a weekly decline as expectations of easing tensions in the Middle East trimmed the geopolitical risk premium that had lifted prices earlier in the week.
As of 20:46 ET (00:46 GMT), Brent crude futures for May delivery were down 0.5% at $107.50 per barrel, while West Texas Intermediate (WTI) crude futures fell 0.7% to $93.82 per barrel.
Both benchmarks were poised to end the week more than 4% lower.
Trump halts attacks on Iranian energy infrastructure for 10 days
U.S. President Donald Trump said he would suspend attacks on Iran’s energy facilities for 10 days after Tehran requested a pause.
Trump also said negotiations with Iran were “going very well,” raising hopes that diplomatic progress could help defuse tensions. Iranian officials, however, have taken a more guarded tone regarding the talks.
Media reports also indicated that Iran is reviewing a 15-point peace plan proposed by the United States. The proposal reportedly includes broad restrictions on Iran’s nuclear and military programs in return for sanctions relief and potential steps toward reducing hostilities.
These developments helped calm concerns about potential supply disruptions in the Middle East, particularly around the Strait of Hormuz — a key shipping route through which a large share of the world’s oil passes.
Oil markets have experienced sharp swings in recent weeks as tensions between the United States, Israel and Iran escalated.
However, repeated signals pointing to possible de-escalation have triggered pullbacks, as traders reconsider the likelihood and scale of any supply disruptions. Earlier this week, crude prices fell sharply after Trump postponed previously planned strikes.
“Any credible de escalation could trigger a renewed risk on move, but for now uncertainty remains elevated,” MUFG analysts said in a recent note.
U.S. stockpile data adds bearish pressure
Adding to the downward momentum this week, U.S. crude inventory figures from both industry and government sources pointed to a more comfortable supply environment.
Data from the American Petroleum Institute showed that crude inventories increased by around 2.3 million barrels last week.
Meanwhile, official figures from the Energy Information Administration showed stockpiles rising by 6.9 million barrels to about 456.2 million barrels — the highest level recorded since June 2024.
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