KABUL (Pajhwok): Oil prices fell in Friday trading after US President Donald Trump said Washington was engaged in constructive talks with Iran, raising hopes that tensions in the Middle East could ease.
According to Reuters, Brent crude fell 72 cents to $103.53 per barrel, while US West Texas Intermediate crude declined 52 cents to $90.97 per barrel.
Trump said on Thursday that Washington was holding “constructive talks” with Tehran and did not intend to attack Iran before the US congressional midterm elections on November 3.
Meanwhile, Iran’s Tasnim news agency reported that Iranian Foreign Minister Abbas Araghchi said Tehran was reviewing the US response to Iran’s proposal to reopen the Strait of Hormuz within seven days.
Despite Friday’s decline, Brent crude remained on track for a weekly gain as increased attacks on oil tankers in the Middle East heightened concerns about global oil supplies. Brent prices rose 4 percent on Thursday.
The United States also imposed new sanctions on Thursday against individuals, networks and 17 vessels linked to the transportation of Iranian crude oil, petroleum products and petrochemicals.
Threats in the Persian Gulf and the Strait of Hormuz—through which nearly 20 percent of the world’s oil and fuel passed before the war—have caused sharp fluctuations in oil prices this week.
Meanwhile, Hurricane Isaias in the Gulf of Mexico has also affected the oil market. US officials said producers in the region had halted daily production of approximately 1.3 million barrels of oil by Thursday.
These developments come as the war between the United States and Iran enters its eighth month, while Washington continues to maintain economic pressure on Tehran.
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