(RTTNews) – Crude oil fell on Friday after four consecutive sessions of gains as prospects for a peace deal between the US and Iran, reducing tensions in the Middle East, gained momentum.
WTI crude oil for delivery in June was last seen trading at $94.17 per barrel, down $1.68 (or 1.75%).
Oil traders continued to monitor developments in the Middle East, waiting for any significant news that could signal the reopening of the Strait of Hormuz.
Since the start of the war between US-Israeli forces against Iran on February 28, Iran has blocked the Strait of Hormuz, stopping all ships carrying oil and energy from Arab countries to their destinations, causing an energy crisis.
On April 8, US President Donald Trump announced a two-week ceasefire over US attacks against Iran and sent envoys to peace talks with Iranian counterparts hosted by Pakistan in Islamabad.
The talks were deemed a “failure” by Trump, who ordered US forces to completely block ship traffic from Iranian ports.
Before the blockade, Iran was exporting about 1.80 million barrels per day during March. About 10% of Iran’s GDP comes from its oil exports.
After persuasion by Arab and Muslim countries, Trump agreed to the second round of peace talks to be held earlier this week. However, it did not start as planned because Iran refused to participate unless the US lifted the blockade on Iranian ports.
As the ceasefire was set to expire on April 22, while the US was preparing to intensify attacks on Iran, Trump agreed (at Pakistan’s request) to extend the ceasefire to give the Iranian regime time to come up with a peace plan.
Today, Iran’s state news media IRNA confirmed a Reuters report that Iranian Foreign Minister Abbas Araghchi will visit Pakistan and convey Iran’s concerns and demands to Pakistani mediators.
Araghchi himself noted through X that his visit focused on bilateral matters and regional development, although he did not provide further details.
According to CNN report, US special envoy Steve Witkoff and Trump’s son-in-law Jared Kushner will likely represent the US, although US Vice President JD Vance will step in if needed.
Separately, Trump also announced the extension of the ongoing ceasefire between Israel and Lebanon for three more weeks, further reducing the heat of the Gulf War.
However, tensions still remain after the US military confirmed the arrival in the Middle East of the aircraft carrier USS George HW Bush loaded with warplanes.
While the USS Gerald R. Ford is anchored in the Red Sea, with the USS Abraham Lincoln already in the area.
The day before, Trump had ordered US naval forces to destroy any Iranian-related ships or boats that come to the Strait of Hormuz area and are suspected of laying sea mines.
Today, US Secretary of War Pete Hegseth said Iran still has an open window to reach a deal with the US, but warned that “time is not on their side” and urged them to speed up the process.
Yesterday, in an interview with CNBC, International Energy Agency Executive Director Fatih Birol said that the closure of the Strait of Hormuz has become the biggest energy crisis the world has ever faced.
The dual blockade imposed by the US and Iran in the Strait of Hormuz has kept oil and energy prices at extremely high levels.
Except for Saudi Arabia and the United Arab Emirates, which have few alternative routes for their exports, Bahrain, Iran, Iraq, Kuwait and Qatar are completely dependent on the Strait of Hormuz and most of their exports go to China, India and Japan.
The US Dollar Index was last seen trading at $98.56, down 0.26 points (or 0.26%).
Traders are watching how the talks progress over the weekend, and experts believe the outcome of the talks could impact crude oil prices in the coming days.
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