Oil prices slip on US-Iran peace hopes, Brent set for weekly gain

Oil prices eased on Friday as diplomatic progress between the United States and Iran reduced fears of supply disruptions in the Middle East, according to Mettis Global. Brent crude futures slipped 0.01% to $102.90 per barrel, while West Texas Intermediate lost $0.02 to reach $90.39 a barrel. Despite the dip, Brent was still heading for a weekly gain after closing nearly 4% higher on Thursday.

US President Donald Trump indicated that Washington would refrain from striking Iran ahead of the November 3 midterm elections, pointing to productive talks meant to end the conflict. The comments came after reports that the administration had weighed military action before the vote. Separately, Tasnim, an Iranian news agency, quoted Foreign Minister Abbas Araqchi as saying Tehran is weighing Washington's reply to an Iranian plan that would reopen the Strait of Hormuz in seven days.

Market swings have deepened this month as concerns over shipping in the Gulf and at the Strait of Hormuz mounted. On Thursday, Washington also announced sanctions on people, networks and 17 vessels accused of carrying Iranian oil and petrochemicals. Elsewhere, the US Marine Minerals Administration said producers had halted about 1.3 million barrels per day, or 62.9% of regional output, as Hurricane Isaias hit Gulf of Mexico operations.