Oil prices moved sharply lower on Friday after reports said China was pressing for stalled peace talks between the United States and Iran to restart. The prospect of renewed diplomacy appeared to ease some of the geopolitical risk that had recently supported crude markets.
According to the report, crude futures fell by more than 4% during the session. Even with that decline, both Brent and West Texas Intermediate were still on track for sizable weekly gains, showing how strongly prices had risen earlier in the week.
The market reaction reflected a shift in sentiment. Hopes that talks between Washington and Tehran could resume suggested a possible reduction in tensions, which can quickly affect expectations for oil supply and regional stability.
At the same time, crude remained supported on a weekly basis by worries over shipping disruptions in key waterways. That combination of diplomatic hopes and ongoing transport concerns left traders balancing the risk of easing conflict against the threat of continued disruption to global oil flows.
