Oil prices ended the trading session on a mixed note on Friday as renewed uncertainty over U.S.-Iran diplomatic efforts rattled market sentiment. The sudden cancellation of follow-up talks in Switzerland dampened hopes for a more stable ceasefire agreement, leaving traders cautious about the outlook for global crude supply routes.
Brent crude futures slipped slightly, while U.S. West Texas Intermediate (WTI) moved higher, reflecting uneven trading reactions across benchmarks. Despite brief gains earlier in the session, both contracts were still headed for a weekly decline of around 8%, highlighting how quickly optimism around easing geopolitical tensions has faded.
The diplomatic setback came after Switzerland’s foreign ministry confirmed that planned discussions in Bürgenstock would not proceed, while the White House also announced that U.S. Vice President JD Vance would no longer attend. Market participants remain focused on developments in the Strait of Hormuz, a key passage for global oil shipments, where recent calm has helped ease fears of immediate disruption.
Vice President Vance noted that tanker traffic continued through the strait and suggested that, so far, commitments to avoid attacks were being upheld. However, analysts warn that the situation remains fragile, with shipping insurers still pricing in elevated risk and many vessels yet to fully resume normal routes.
Elsewhere in the market narrative, OPEC pushed back against forecasts predicting an imminent peak in global oil demand, insisting that consumption will remain strong for the foreseeable future. Analysts say oil prices are likely to stay within a $75 to $82 range in the near term as traders balance easing supply fears with lingering geopolitical risks and uncertain shipping recovery.
source: cnbc