Global oil markets showed signs of easing on Friday as prices slipped below the $100 mark, following fresh signals from Donald Trump suggesting potential progress in negotiations with Iran.
Brent crude fell towards $98 per barrel, while West Texas Intermediate hovered near $93, partially reversing sharp gains from the previous session, according to a report by News18.
Diplomatic signals cool markets, but uncertainty lingers
The dip came after Trump struck a more optimistic tone on the prospects of a longer-term agreement with Iran, raising hopes of easing supply disruptions that have rattled global energy markets for weeks.
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The US President indicated that Tehran may be open to conditions it had earlier resisted, including discussions around reopening the Strait of Hormuz which is a critical route through which nearly a fifth of the world’s crude supply passes.
However, Iranian officials have not confirmed any such development, keeping traders cautious.
Diplomatic sources across the Gulf and Europe told News18 that while talks are progressing, a comprehensive agreement could still take months, with calls growing to extend the current ceasefire to allow more time for negotiations.
From extreme swings to cautious stability
The conflict, now approaching its 50th day, has had a pronounced impact on oil markets.
Iran’s earlier restrictions on Hormuz traffic, coupled with a US naval blockade, tightened supply chains and triggered sharp price volatility. At one point in March, crude prices saw swings of up to $38 within short periods. This week, however, Brent has traded within a narrower $10 band, indicating relative stabilisation.
The market is indicating that volatility has declined to its lowest point in recent weeks, despite the fact that investors are highly attuned to geopolitical events.
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Tentative peace in an unstable region
The price of crude oil has been highly sensitive to political rhetoric emanating from the White House. The President of the United States has been sending contradictory messages regarding the situation, ranging from threats of escalation to diplomacy, resulting in abrupt changes in the price.
Furthermore, the recent ceasefire agreement between Israel and Lebanon has helped in easing some pressure; however, the tension involving Hezbollah, which is a major ally of Iran, has remained highly dependent on other regional factors.
According to experts, the recent decline in the price of oil is an indication of optimism, not certainty.
