Brent crude futures settled at $105.33 a barrel, rising 26 cents, or about 0.3%. U.S. West Texas Intermediate futures settled at $94.40 a barrel, falling $1.45, or 1.5%.
For the week, Brent gained about 16% and WTI rose nearly 13%.
Crude futures gave back early gains after Reuters reported that Iranian Foreign Minister Abbas Araqchi was expected to arrive in Islamabad late on Friday to discuss proposals for resuming peace talks with the U.S. after talks collapsed earlier this week.
Prices fell further after CNN reported that U.S. President Donald Trump was sending special envoy Steve Witkoff and Jared Kushner to Pakistan for talks with Iran’s foreign minister.
Later, Trump told Reuters that Iran plans to make an offer aimed at satisfying U.S. demands. “They’re making an offer and we’ll have to see,” Trump said. Early in the session, prices rose 2% on fears of renewed military escalation in the region, the day after Iran released footage of commandos boarding a cargo ship in the Strait of Hormuz, and as progress stalled on re-opening the vital waterway.
“Traders are liquidating length ahead of an unusually unpredictable weekend and will readjust their positions Sunday night based on Iranian developments,” said Tamas Varga of oil broker PVM.
Navigation through the Strait of Hormuz, which before the war carried about a fifth of global oil output, remains effectively blocked. Iran’s capture of two cargo ships highlighted Washington’s difficulties in trying to control the passage.
Only five ships, including an Iranian oil products tanker, have moved through the Strait of Hormuz in the past 24 hours, shipping data showed.
On Thursday, U.S. President Donald Trump said Iran may have loaded up its weaponry “a little bit” during a two-week ceasefire, but added that the U.S. military could eliminate it in a single day. On Wednesday, he said he would indefinitely extend the ceasefire to allow for further peace talks.
“As tensions have heightened this week since no meeting between the U.S. and Iran developed, an open-ended ceasefire will likely coincide with a continued conflict,” said oil consultant Jim Ritterbusch of Ritterbusch and Associates.
“This favors even higher prices especially in Brent and diesel, the more sensitive markets to a continuation of this war.”
Haitong Futures said in a report that if peace talks fail to make progress by the end of April and fighting resumes, oil prices could climb to new highs for the year.
