Oil hovers near $106 amid US-Iran truce hopes, Saudi attacks

Mettis Global reported that Brent crude rose 2.54 per cent to $105.80 a barrel on Friday, while West Texas Intermediate slipped $1.44 to $93.17. The gap between the two benchmarks widened to $12.68, its largest since May, when it exceeded $13.

Traders weighed hopes of a truce between Washington and Tehran against fresh security threats across the Middle East. Negotiators from both countries, meeting in New York, were reportedly exploring a staged exit from the war that might see Iran open up the Strait of Hormuz again while the United States eases its economic blockade, Reuters said. On Thursday, Iranian President Masoud Pezeshkian put the onus on Washington to settle whether it is prepared to end the conflict.

WTI had shed 13 per cent across the previous six sessions and was 6.42 per cent lower on the week, while Brent added 2.09 per cent. Much of the split was put down to fears that Washington's restriction on diesel shipments abroad could boost supply at home, even though the two benchmarks usually move together. Saudi Arabia said it had intercepted six ballistic missiles fired by the Houthis from Yemen, which were aimed at Taif and at Yanbu on the Red Sea coast.