Oil Prices Dip as Trump Signals Progress in Iran War Talks
By Shahzad Paracha :
Oil prices fell in early trading on Friday, capping a volatile week in global energy markets after US President Donald Trump said negotiations aimed at ending the war with Iran were progressing “very well”.
Brent crude futures dropped 90 cents, or 0.8%, to $107.11 per barrel by 0024 GMT, while US West Texas Intermediate (WTI) declined 83 cents, or 0.88%, to $93.65 per barrel, trimming gains recorded during the previous trading session.
On Thursday, oil prices had surged amid fears of further escalation in the conflict, with Brent climbing 5.7% and WTI rising 4.6%. Despite the sharp increase, trading activity remained subdued, with front-month Brent volumes at their lowest since February 27, the day before US and Israeli strikes on Iran began.
However, both benchmarks are now heading for weekly losses. Brent crude is on track for its first weekly decline in six weeks, while WTI is set to record a second consecutive weekly drop, as markets react to signs that diplomatic efforts could reduce tensions.
Trump Announces Pause in Attacks
In a post on his Truth Social platform, President Trump said he had agreed to pause attacks on Iran’s energy infrastructure for 10 days.
“As per Iranian government request, I am pausing the period of energy plant destruction by 10 days to Monday, April 6, 2026, at 8pm Eastern Time,” he wrote.
The announcement has raised hopes that negotiations could ease the conflict, which has severely disrupted global oil supply.
Diplomatic Efforts Continue
An Iranian official told Reuters that Tehran had reviewed a 15-point proposal from the United States, which was delivered through Pakistan. The plan was discussed by senior Iranian officials and a representative of the country’s Supreme Leader, though the official described the proposal as “one-sided and unfair.”
Trump also said Iran had allowed 10 Pakistan-flagged oil tankers to pass through the Strait of Hormuz as a goodwill gesture during the negotiations.
Supply Disruptions and Strategic Concerns
The conflict has sharply disrupted global energy flows. Shipments through the Strait of Hormuz, a key route that normally carries around one-fifth of the world’s crude oil and liquefied natural gas, have slowed significantly.
According to estimates, the war has removed around 11 million barrels of oil per day from global supply.
The International Energy Agency (IEA) has warned the crisis could have a larger impact on energy markets than the oil shocks of the 1970s combined with disruptions caused by the Russia-Ukraine war.
At the same time, the United States has deployed thousands of additional troops to the Middle East, with Trump reportedly considering the possibility of using ground forces to seize Kharg Island, Iran’s key oil export terminal.
Markets Expect Short Conflict
Despite the supply disruptions, some analysts believe markets are assuming the conflict will be resolved relatively quickly.
“For today, the markets are not assuming a huge impact, particularly in oil,” Macquarie Group chief executive Shemara Wikramanayake said at the Asia Pacific Financial and Innovation Symposium in Melbourne.
“If you look at the forward curve, they’re assuming this will end quite fast and things will stabilise quite quickly,” she added.
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