• WTI falls as Qatari-mediated US-Iran talks sparked hopes of reopening the Strait of Hormuz.
• Iran demanded a blockade end, while the White House noted little pressure to negotiate despite open dialogue.
• Oil prices may rebound after Saudi Arabia intercepted six Houthi ballistic missiles targeting major regional cities.

West Texas Intermediate (WTI) oil price declines after two days of gains, trading around $92.60 per barrel during Asian hours on Friday. Crude oil prices depreciated amid reports that the United States (US) and Iran were considering a phased deal to reopen the Strait of Hormuz and lift a US blockade on Iranian ports. Mediated by Qatari officials, these efforts to reach a breakthrough were reportedly underway on the sidelines of the United Nations (UN) General Assembly.

Despite these talks, both nations maintained firm positions. Iran insisted on retaining control over the Strait of Hormuz, refusing any agreement unless the US eases military pressure and lifts the port blockade. Meanwhile, a White House official stated that President Donald Trump remained open to discussions, though he emphasized that the US felt little pressure to negotiate given its strong position following the sanctions campaign.

However, oil prices may soon rebound as Middle East tensions continue to escalate. Iran-aligned Houthi militants in Yemen recently launched missiles targeting Saudi cities, including Yanbu and Taif. The Saudi-led coalition in Yemen confirmed that Saudi Arabia intercepted six of these ballistic missiles.

US energy surplus cushions manufacturers from Strait of Hormuz risks

Analysts at ING warn that “restrictions on shipping through the Strait of Hormuz have raised concerns about energy shortages, higher prices and potential production disruption for manufacturers globally.” However, they argue that the US is “better positioned to manage those challenges than European and Asian competitors,” noting that the country “produces more energy than it consumes,” which offers a meaningful buffer against supply disruptions and price spikes affecting international peers.