Oil prices fall on report Iran foreign minister to arrive in Pakistan for peace talks
Oil prices fell after a three-week extension of the Israel-Lebanon ceasefire.
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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.
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Oil prices fell Friday on a report that Iranian Foreign Minister Seyed Abbas Araghchi will arrive in Pakistan for peace talks.
A Pakistani government source told Reuters that Araghchi is expected to arrive in Islamabad tonight and peace talks with the U.S. will likely happen.
International benchmark Brent crude futures fell 0.42% to $104.63 per barrel by 7:54 a.m. ET, while West Texas Intermediate futures lost 1.15% to $94.75.
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.
