US-Iran De-escalation Lowers Oil Prices

Oil prices, specifically Brent Crude>>> and West Texas Intermediate>>> futures, fell on Friday as traders became more confident that a renewed conflict between the United States>>> and Iran>>> was less likely. Despite this daily decline, both contracts were still set to post their first weekly gains in three weeks, driven by earlier flare-ups in the Middle East and limited traffic in the Strait of Hormuz>>>. Hopes for a peace agreement between the United States>>> and Iran>>> were dashed, leading to slight rises in crude and natural gas prices earlier in the week. However, these gains were capped by longer-than-expected oil inventories, rerouted exports, and falling demand, with weak demand in China>>> also depressing prices. Hezbollah>>> leader Naim Qassem>>> rejected a United States>>>-brokered agreement between Israel>>> and Lebanon>>> to halt fighting, a move that Iran>>> has made a condition for any peace deal with Washington. United States>>> President Donald Trump>>> expressed optimism about progress between Israel>>> and Lebanon>>>. OPEC>>>, through its Secretary General Haitham Al Ghais>>>, maintained its oil demand growth forecast of 1.2 million bpd for the year, despite the ongoing Middle East conflict and Strait of Hormuz>>> closure. Iran>>>'s oil exports have fallen to a six-year low due to the United States>>> naval blockade.