Oil prices moved lower on Friday as traders reacted to reports that the United States and Iran were exploring a phased route toward easing the conflict and reopening the Strait of Hormuz. The prospect of even a partial diplomatic step reduced some of the immediate supply premium that had built into crude during the week.
Reuters reporting carried by Investing.com said Brent crude futures for November were down 1.8% at $104.67 a barrel by 19:15 GMT. The pullback interrupted a two-day advance, although Brent was still positioned for a weekly gain after sharp volatility tied to the Middle East conflict and disruptions around key shipping routes.
The reported framework under discussion would involve Tehran reopening the Strait of Hormuz while Washington eases its economic blockade. U.S. officials have also cautioned that talks should not yet be described as a major breakthrough, leaving traders sensitive to any sign that negotiations are stalling or progressing.
CNBC separately reported that Iran had offered to reopen the Strait within seven days and restart nuclear talks. At the same time, attacks linked to the conflict continued to threaten regional energy infrastructure, which means the market is balancing diplomatic optimism against an unresolved physical supply risk.
For oil markets, the Strait remains central because any credible reopening would improve expectations for seaborne energy flows and reduce the scarcity premium embedded in Brent crude oil and WTI crude oil. Until a formal agreement is reached and shipping conditions normalize, crude is likely to remain highly reactive to headlines from Washington, Tehran and the wider Gulf region.