Oil prices little changed after Iran's president indicates Tehran wants war to end soon
U.S. Treasury Secretary Scott Bessent told CNBC on Thursday that Washington will impose the "toughest sanctions in history" against Iran.
Kass
Oil prices were little changed Friday after Iran's president indicated that Tehran wants the war with the U.S. to end sooner rather than later.
Brent crude futures were 54 cents higher at $94.32 per barrel by 1:01 p.m. ET. U.S. West Texas Intermediate futures were up 14 cents to $86.97.
Iranian President Masoud Pezeshkian described the memorandum of understanding with the U.S. as a victory for the Islamic Republic. Pezeshkian said "it is better to end the war today" when Iran is "in a position of power and dignity," according to the state news agency PressTV.
The MOU, which the U.S. and Iran signed June 17, allowed Tehran to determine how the Strait of Hormuz would be administered through negotiations with Oman and the other Gulf states.
Oil prices are set to finish the week more than 5% higher after Treasury Secretary Scott Bessent told CNBC on Thursday that Washington will impose the "toughest sanctions in history" against Iran.
Bessent echoed President Donald Trump's Wednesday threat to impose a crushing economic operation against the Islamic Republic.
The Treasury Secretary said it was likely the U.S. would not return to large-scale combat operations against Iran as it steps up economic pressure. He said oil prices should be lower now that Washington is relying on sanctions rather than military force against Iran.
Crude oil prices eased significantly over the first two weeks in August as U.S. officials suggested a deal with Tehran could be imminent. But an agreement never materialized.
A hardening of Washington's position has left the future of shipping through Hormuz deeply uncertain, with observed vessel traffic remaining well below pre-war levels amid fatal attacks.
"With the conflict not showing many signs of progressing diplomatically, the oil market is once again pricing in the failure of diplomacy," Janiv Shah, vice president of oil markets analysis at Rystad Energy, told CNBC on Friday.
"But the bigger pressure is being felt in refined products, with diesel cracks hitting record highs amid fears of prompt supply shortages, sustained demand and thin inventory buffers."
"While Brent could range widely depending on the scenarios outlined, we expect product markets to feel a more significant impact, with refinery constraints and energy security concerns keeping product cracks and margins elevated."
