Oil prices are little changed after Iran's president indicates Tehran wants war to end soon

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 added 61 cents to close at $94.39 per barrel. U.S. West Texas Intermediate futures rose 23 cents to $87.06.

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 finished 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. Echoing President Donald Trump's threats, Bessent said the U.S will collapse the regime in Tehran.

The Treasury Secretary said traders had misinterpreted the Trump administration's threats by bidding up oil prices. The economic pressure campaign means the U.S. likely will not return to large-scale combat operations against Iran as it steps up economic pressure, he said.

But Iran is already one of the most sanctioned countries in the world, said Helima Croft, head of global commodity strategy at RBC Capital Markets. It is not clear whether the U.S. will go after China and Russia who are partners of Iran, Croft told CNBC's "Squawk on the Street."

The question is whether more sanctions will change Iran's behavior, Croft said. Tehran appears to believe that it can outlast the U.S., she said.

The U.S. military told CNBC Thursday it has helped tankers transport more than 660 million barrels of oil through Hormuz since early May. This implies at least 160 million barrels, or more than 7 million barrels per day, exited the strait over the last three weeks based on previous statements from the military.

"The Strait of Hormuz is not closed but we still estimate that we're losing from this war about 8 million barrels a day," Croft said. About 20 million bpd of oil and products passed through Hormuz before the war.

Crude oil prices had eased significantly over the first two weeks in August as U.S. officials suggested a deal with Tehran was imminent to increase traffic through the strait. But prices started rising after an agreement never materialized and both sides' rhetoric escalated again.

Oil prices are still well below their wartime peak, but the global diesel market is very tight due to Ukraine's attacks on Russian refineries and outages in the Middle East due to the disruption in Hormuz. Diesel is crucial for the global economy because it is the main fuel for agriculture and freight transportation.

"Diesel prices are at historic highs and we do not have spare refining capacity for diesel," Croft said. "That is the market when it comes to energy to pay very, very close attention to."