FX.co ★ Brent Crude Set for Biggest Weekly Drop since Covid

Brent crude fell more than 1% to below $97 a barrel on Friday, extending its weekly loss to nearly 15%—the sharpest drop since March 2020—as hopes for a diplomatic breakthrough in the Middle East eased fears of supply disruptions. US President Donald Trump discussed de-escalation efforts with Qatar’s Emir, Sheikh Tamim bin Hamad Al-Thani, while Tehran is reportedly reviewing proposals from mediators regarding its nuclear programme. A possible resolution to the conflict could pave the way for increased crude exports from the region. However, major hurdles persist, as Iran is insisting on the lifting of the US naval blockade, sanctions relief, and the release of frozen assets before fully reopening the Strait of Hormuz. At the same time, attacks on oil tankers continue, with UKMTO data showing that incident levels remain close to record highs.