Oil prices slip as Iran talks compete with Middle East supply concerns

• Oil prices declined Friday as traders weighed possible US-Iran diplomatic progress against risks from escalating attacks on Saudi Arabia.
• Brent crude fell 1.4% to $105.11 per barrel, while WTI declined 2.1% to $92.61 per barrel.
• The Brent-WTI spread widened as global supply concerns supported Brent while US market factors pressured WTI.

Oil prices moved lower on Friday as investors balanced expectations for possible progress in US-Iran negotiations against concerns that continued attacks in the Middle East could disrupt crude supplies.

Brent crude futures declined $1.47, or 1.4%, to $105.11 per barrel, while West Texas Intermediate (WTI) futures fell $2, or 2.1%, to $92.61 per barrel at 0541 GMT.

Markets have been monitoring diplomatic discussions between the United States and Iran, with negotiators reportedly exploring a phased framework that could involve Tehran reopening the Strait of Hormuz and Washington easing economic restrictions.

The Strait of Hormuz is a major global energy transit route, and disruptions there have historically raised concerns about international oil availability.

Despite diplomatic developments, military tensions remain a factor for energy markets.

Saudi Arabia reported intercepting ballistic missiles launched by Yemen’s Iran-backed Houthi rebels targeting areas including Taif and Yanbu.

Analysts said hopes for diplomatic progress have helped limit oil price gains despite continued regional risks.