Global oil prices recorded a modest decline on Friday amid growing prospects of a ceasefire between the US and Iran and progress on talks to reopen the Strait of Hormuz, though uncertainty persisted over the threat of attacks on Saudi oil facilities. Brent crude fell 87 cents, or 0.82%, to settle at $105.73 per barrel, while US West Texas Intermediate (WTI) crude dropped $1.56, or 1.65%, to $93.05 per barrel. The decline followed a nearly 5% surge in both benchmarks a day earlier, with Brent gaining 3.4% and WTI rising 2.7%.

Hormuz Talks Central To Market Mood

Reports indicate American and Iranian negotiators in New York are discussing a phased path to end the war, potentially involving Iran reopening the Strait of Hormuz in exchange for the US easing economic sanctions.

Roughly a fifth of the world's oil and gas shipments have been disrupted since the conflict began, fueling global concerns over supply and pricing.

Saudi Arabia Faces Continued Missile Threats

Meanwhile, Saudi Arabia said it intercepted six ballistic missiles fired by Yemen's Houthi rebels, targeting the southern province of Taif and the Yanbu area near the Red Sea. Analysts say continued risks to Saudi energy infrastructure remain a key driver of market uncertainty. Saudi Arabia has ramped up crude pumping, though tanker loading from the Yanbu export hub has yet to fully resume.