Oil prices traded lower on Friday, in a choppy session, on tentative signs that the United States and Iran were nearing a preliminary agreement to end the war.
Negotiators were discussing a new memorandum of understanding that appeared close to winning approval from both sides, although disagreements remained over several key provisions. One major hurdle was the status of the Strait of Hormuz, a critical trading route for oil and gas tankers from the Middle East.
The potential breakthrough followed a volatile week in which U.S. and Iranian forces exchanged sporadic fire, highlighting the risks of renewed escalation as well as the fragility of the current truce.
