Oil prices cooled down on Friday, after US signalled negotiations with Iran were ‘going very well’ and pushed the deadline with the country for 10 days. Both benchmarks, Brent crude and West Texas Intermediate (WTI) were down 2%. Brent crude touched $108 per barrel before easing to $105. 75 per barrel, down 2. 08%. West Texas Intermediate stood at 92. 67 after a fall of 1. 94%, as of 7:50 am IST.
This comes after Brent crude prices rose 4.8%, a day earlier to settle at $101.89 a barrel, amid expectations of a return to normal operations in the Strait weakened. The price is significantly higher than the roughly $70 level seen before the war began. At the same time, the US benchmark crude also climbed 4.6% to $94.48 per barrel.
However, after surging nearly 5% in the previous sessions, oil prices eased after US President Donald Trump said that negotiations with Iran are underway and dismissed online reports suggesting otherwise.
“Talks are ongoing and, despite erroneous statements to the contrary by the Fake News Media, and others, they are going very well,” Trump said.
“They better get serious soon, before it is too late,” he added on his social media platform on Thursday morning, referring to Iran’s negotiators. “Because once that happens, there is NO TURNING BACK, and it won’t be pretty!”
He also extended the deadline for possible strikes on Iran’s energy infrastructure by 10 days, stating that the pause was made at Tehran’s request and that negotiations are progressing positively.
“As per Iranian Government request, please let this statement serve to represent that I am pausing the period of Energy Plant destruction by 10 Days to Monday, April 6, 2026, at 8pm, Eastern Time,” Trump said.
As the Middle East war nears its one month, tightening global oil supply flows across the globe. Meanwhile, strategists at Goldman Sachs have projected that Brent crude could average around $105 in March and rise further to $115 in April, before gradually easing to about $80 in the fourth quarter and remaining at that level through 2027.
Oil prices have been on an upward trajectory since the Middle East war began on February 28, as Iran tightened its control over the Strait of Hormuz. Reports also suggest that Iran’s parliament is working on a draft bill to introduce charges on vessels passing through the strategic waterway, effectively requiring ships to pay for safe passage.
At the same time, Iran is reportedly planning a formal system to levy fees on ships using the Strait. According to the semi-official Fars news agency, lawmakers are preparing legislation that would mandate payments from vessels transiting the route.
Fars, citing an unnamed lawmaker, reported that the proposal could be finalised as early as next week, potentially providing a legal framework for Iran’s control over the Strait.
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