Oil prices mixed as U.S. and Iran expected to hold talks in Pakistan
The talks would come after a previous efforts at negotiations fell apart.
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The Greek-flagged crude oil tanker "Asahi Princess" is made ready off the coast of the Syrian Baniyas port refinery, along the Mediterranean Sea on on April 15, 2026. Iraq has begun exporting crude using tanker trucks through Syria, its oil ministry said, as an official said oil revenue last month dropped more than 70 percent compared to February.
Bakr Alkasem | AFP | Getty Images
Oil prices were mixed Friday as the United States and Iran are expected to hold direct talks in Pakistan.
International benchmark Brent crude futures closed little changed at $105.33 per barrel, while West Texas Intermediate futures lost more than 1% to $94.40.
U.S. special envoy Steve Witkoff and Jared Kushner will travel to Pakistan Saturday morning for direct talks with their Iranian counterparts, White House press secretary Karoline Leavitt confirmed Friday.
Iran's foreign minister, Abbas Araghchi, said earlier Friday that he would travel to Islamabad, Muscat and Moscow to "closely coordinate with our partners on bilateral matters and consult on regional developments."
Meanwhile, Israel and Lebanon agreed Thursday to prolong their truce by three weeks following a meeting at the White House with senior U.S. officials, President Donald Trump said Thursday.
The ceasefire, initially set to last 10 days, will now give more time for diplomatic negotiations, with Washington also pledging support to bolster Lebanon's defenses against Hezbollah.
U.S. oil prices since the start of the year
While the ceasefire between the U.S. and Iran has held, the conflict has evolved into naval blockades keeping the vital Hormuz Strait closed, as both attempt to gain economic leverage to secure a deal favorable to their interests.
"The longer the strait remains closed, the greater the economic costs — raising the likelihood that one side will be forced to back down" Commonwealth Bank of Australia wrote in a note published Friday.
About 20 million barrels of oil and petroleum products were shipped every day through the strait before the war.
"We judge the U.S. will be the first to back down because of mounting political and economic costs. But there remains a risk of major military escalation that would significantly push up the U.S. dollar," the analysts wrote.
Fatih Birol, head of the International Energy Agency, told CNBC on Thursday that "We are facing the biggest energy security threat in history."
"As of today, we've lost 13 million barrels per day of oil ... and there are major disruptions in vital commodities," he told Steve Sedgwick virtually at CNBC's CONVERGE LIVE in Singapore.
Birol has previously warned that the Iran war and ongoing closure of the Strait of Hormuz would result in "the largest energy crisis we have ever faced" and urged governments to bolster their resilience with alternative energy sources.
— CNBC's Holly Ellyatt contributed to this report.
