Oil prices declined during Asian deals on Friday, capping a volatile week after United States President Donald Trump signalled progress in negotiations with Iran and announced a temporary halt to attacks on the country’s energy infrastructure.
By 2:40 pm AEDT (3:40 am GMT), Brent crude futures fell $1.12, or 1%, to US$106.89 per barrel, while West Texas Intermediate crude declined 77 cents, or 0.8%, to $93.71 per barrel.
The pullback follows a sharp rally in the previous session, when Brent surged 5.7%, and WTI gained 4.6% amid fears of further escalation.
On a weekly basis, Brent is on track for its first decline in six weeks, while WTI is set to post a second consecutive weekly loss.
Trump confirmed the halt in a Truth Social post, stating: "As per Iranian Government request, please let this statement serve to represent that I am pausing the period of Energy Plant destruction by 10 Days to Monday, April 6, 2026, at 8 P.M., Eastern Time.
"Talks are ongoing and, despite erroneous statements to the contrary by the Fake News Media, and others, they are going very well."
According to reports, Iranian officials are reviewing a 15-point proposal from the United States, delivered via Pakistan. One source reportedly described the plan as “extremely maximalist and unreasonable”.
Trump also said Iran had allowed 10 oil tankers to transit the Strait of Hormuz as a goodwill gesture during negotiations, noting the vessels were flagged in Pakistan.
However, geopolitical risks remain elevated. The United States has deployed additional troops to the Middle East, with Trump reportedly considering the use of ground forces to seize Iran’s key oil export hub at Kharg Island.
The conflict has severely disrupted energy flows through the Strait of Hormuz, a critical chokepoint that typically handles around a fifth of global crude oil and liquefied natural gas supply.
Fatih Birol, head of the International Energy Agency, described the current crisis as more severe than the oil shocks of the 1970s combined with the impact of the Russia-Ukraine war on gas markets.
