HOUSTON: Oil prices climbed on Friday, as investors worried that the US and Iran would be unable to reach a peace agreement that would allow shipping traffic to return to normal in the Strait of Hormuz.
Brent crude futures settled at USD103.54 a barrel, up 96 cents, or 0.94 percent. US West Texas Intermediate futures finished at USD96.60 a barrel, up 25 cents or 0.26 percent.
Both had risen over 3 percent earlier in the session. On a weekly basis, Brent was 5.48 percent lower and WTI was down by 8.37 percent, with prices volatile as expectations for a peace deal between Iran and the US shifted.
“We have so many headlines back and forth, it’s hard to keep up,” said Phil Flynn, senior analyst with Price Futures Group. “The story now is Iran will deliver the uranium for the lifting of sanctions. But they keep changing the news before the ink is dry on the newspaper.”
READ MORE: Oil prices whipsaw on prospects for US-Iran deal
A diplomatic source in Islamabad told Iran’s state news agency IRNA that Pakistan’s army chief had left for Iran. A senior Iranian source told Reuters earlier that gaps with the US have narrowed, and US Secretary of State Marco Rubio spoke of “some good signs” in talks.
“There’s been some progress. I wouldn’t exaggerate it. I wouldn’t diminish it,” Rubio told reporters after a NATO ministers’ meeting in Sweden. “There’s more work to be done,” he added. “We’re not there yet. I hope we get there.”
Rubio said the US was in constant communication with the Pakistanis who are facilitating the talks with Iran.
The countries remained divided on Tehran’s uranium stockpile and controls on the Strait of Hormuz. “I think we’re very much subject to the headlines,” said John Kilduff, partner with Again Capital. “We seem headed for a resolution, but the level of clarity is spectacular.”
Rubio also said the US had not requested the assistance of NATO allies in reopening the strait.
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