Oil falls on report China pushing for end US-Iran war
Crude oil prices dropped significantly following reports that China is mediating peace talks between the U.S. and Iran. Despite the dip, oil markets remain volatile due to ongoing geopolitical tensions in the Red Sea and the Strait of Hormuz.
Why it matters
Global energy prices are highly sensitive to conflict in the Middle East, impacting inflation and economic stability worldwide.
Reuters Crude oil futures prices were more than 4 percent lower on Friday after sources said that China had initiated a push to resume stalled peace talks between the United States and Iran, but remained on track for hefty weekly gains.
Both Brent and US West Texas Intermediate crude have rallied this week as the United States and Iran exchanged missile strikes, traffic through the Strait of Hormuz fell to a trickle and Yemen's Houthis attacked shipping in the Red Sea.
Brent futures settled at $96.78 a barrel, down $3.91, or 3.88 percent, having settled above $100 in the previous session for the first time since May.
The contract remained on course for a gain of nearly 10 percent this week.
West Texas Intermediate (WTI) futures finished at $89.31 a barrel, down $2.88, or 3.12 percent, on track for an 8.27 percent weekly rise.
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