Oil futures moved lower on Friday and were set for weekly losses after an extension of indirect talks between the United States and Iran appeared to reduce the near-term risk of hostilities that could constrain supply.
Brent crude futures fell 28 cents, or 0.4%, to $70.47 a barrel, while U.S. West Texas Intermediate (WTI) futures dropped 29 cents, or 0.44%, to $64.92. For the week, Brent was on track for a 1.8% decline and WTI was set for roughly a 2.2% fall, pulling back some of the gains seen the prior week.
Markets reacted to indirect talks held in Geneva between the United States and Iran over the latter's long-running nuclear dispute. The discussions were framed by an elevated U.S. military posture in the region, ordered by President Trump, which had previously heightened concerns about a potential escalation that might disrupt energy supplies.
During the Geneva meetings, oil briefly rose by more than $1 a barrel after media reports suggested the talks had stalled. Those reports cited U.S. demands for zero enrichment by Iran and for the delivery of all 60% enriched uranium to the United States as sticking points. Later in the session, prices eased when the Omani mediator indicated the two sides had made progress.
Omani Foreign Minister Sayyid Badr Albusaidi said on the social platform X that the parties planned to resume negotiations, with technical-level discussions scheduled to take place next week in Vienna after the meetings in Geneva.
Analysts noted the slim time window for a comprehensive agreement. Daniel Hynes of ANZ said the talks initially reduced fears of immediate U.S. military action, but that there was little time left to reach a deal before President Trump’s deadline of 1-6 March.
Contextual note - The market movements reflected shifting perceptions of geopolitical risk tied to the diplomatic process between Washington and Tehran. Prices reacted up when reports signalled a breakdown on specific nuclear demands, then moved lower once the mediator reported progress and a follow-up round of technical talks was announced.
What to watch next - Traders will likely focus on the outcome of the scheduled technical discussions in Vienna next week and any further statements from mediators or the negotiating parties that clarify whether the substantive issues, including enrichment levels and the handling of 60% enriched uranium, are resolvable within the timeline referenced by analysts.