Oil prices climbed strongly in early Asian trading on Friday, reversing some of the recent slide as investors looked for additional confirmation of progress in talks between the United States and Iran. The move represented a rebound from losses that left crude on track for a weekly decline.
By 19:06 ET (23:06 GMT), West Texas Intermediate futures for July had risen 1.6% to $94.34 a barrel. For the week, WTI was down roughly 6.6%.
Market participants continued to weigh comments from U.S. officials and reports around the diplomatic process. Positive-sounding remarks from Washington appeared to have contributed to a recovery in prices, while other developments kept upside potential intact.
Several supply-side factors remained in focus. The Strait of Hormuz continued to be effectively closed to regular flows, leaving global supplies constrained. Reports indicated that oil movements through the strait were limited, and Iran was reportedly preparing arrangements to levy tolls on transit through Hormuz.
Tensions between Washington and Tehran persisted on core issues. The United States and Iran were described as holding opposing positions regarding Iran's uranium stockpile and control of the Strait of Hormuz. U.S. President Donald Trump reiterated the need to seize Iran's uranium stockpile, saying that Iran could not be permitted to obtain a nuclear weapon.
Separately, Secretary of State Marco Rubio said that Tehran's proposal to implement a toll system in the strait would render a diplomatic solution unworkable. At the same time, Rubio acknowledged that there had been some progress in the discussions.
Earlier in the week, Trump indicated he had postponed a planned military strike on Iran and had signaled that talks with Iran were showing signs of movement. Those comments were a major factor in driving prices lower during the week by suggesting a possible de-escalation of the conflict.
There were also media reports that the United States and Iran had reached a final draft for a peace agreement, though neither Washington nor Tehran confirmed that development.
Despite the tentative diplomatic steps, officials in Washington continued to underscore the possibility of military action if talks did not produce acceptable outcomes. Trump said he was prepared to order strikes against Iran should negotiations fail to achieve sufficient progress.
Market context: The tug-of-war between signals of diplomatic progress and continuing supply disruptions through the Strait of Hormuz left crude markets volatile. The week-to-date decline reflected market sensitivity to comments about talks, while constrained flows supported price resilience.