FX.co ★ Oil Retreats on Talks of a Phased Deal

Crude oil slipped below $94 a barrel on Friday as US and Iranian negotiators weighed a phased deal to reopen the Strait of Hormuz. Under the reported proposal, Tehran would restore access through the strait in exchange for Washington lifting its blockade of Iranian ports. Yet similar talks have repeatedly appeared close to a breakthrough in the past, only to fall apart.

A White House official said President Donald Trump remained open to talks with Iran, but maintained that US sanctions and the existing blockade meant Washington was under no pressure to negotiate.

Oil prices have swung sharply throughout the week, buffeted by conflicting signals over the chances of a peace agreement, evidence of recovering energy flows from the Middle East, and speculation that Washington could curb diesel exports. Despite recent gains, the US crude benchmark is down about 2% for the week, underscoring persistent uncertainty over the possible reopening of the crucial shipping corridor and the broader supply outlook.