Oil Prices Fall as Diplomatic Efforts Seek to Prevent Resumption of US Strikes on Iran

ARK News.. Oil prices fell on Thursday as traders assessed renewed diplomatic efforts in the Middle East aimed at avoiding a possible resumption of US military strikes against Iran.

According to Bloomberg, Brent crude fell towards $114 a barrel after rising by more than 1% in the previous session, while West Texas Intermediate (WTI) traded near $102 a barrel.

Brent, the global benchmark, has gained 11% this month, reaching its highest level since April amid the ongoing conflict.

The surge has put pressure on consumers and posed a challenge for central bank officials seeking to contain inflation.

The US Federal Reserve kept interest rates unchanged this week, while traders expect policymakers to resume tightening monetary policy next month.

Iranian Foreign Minister Abbas Araghchi said Tehran was continuing to give diplomacy a chance. Meanwhile, The Wall Street Journal reported that US Vice President JD Vance had been in contact with Mohsen Rezaei, secretary of Iran’s Supreme National Security Council.

US President Donald Trump acknowledged that Vance had sent a message to Iran, but said the initiative focused on offering medical supplies. Trump also told Axios that negotiations were taking place through intermediaries, while stressing that he did not know whether they would produce results.

Rebecca Babin, senior energy trader at CIBC, said headlines of this kind could move oil prices, adding, "Any indication of communication between senior officials on both sides could be enough to prompt some traders to take profits and reduce part of the risk premium.”

75