SINGAPORE, Aug 28 - Oil prices retreated on Friday, poised to end a two-week winning streak as traders reacted to a mix of diplomatic developments involving Iran and mounting geopolitical friction tied to Russia and Britain.
By 0035 GMT, Brent crude futures were trading 25 cents lower, at $89.45 a barrel, while West Texas Intermediate (WTI) futures slipped 22 cents to $83.31. Both contracts were set to finish the week in negative territory, with Brent down about 5.3% for the week and WTI off roughly 4.3%.
The market’s recent volatility followed reports that U.S. President Donald Trump has shown little interest in returning to prior deal terms with Iran. A report, citing people familiar with the matter, said the Trump administration repeatedly informed mediators it was not interested in reviving the June memorandum of understanding, a development that complicates efforts to restart diplomatic talks.
Earlier in the week, Washington stated it was not engaged in talks with Iran, even as other countries pushed to re-establish a channel between the two sides. On Monday, the United States announced what it described as the "toughest sanctions in history" on Iran. Tehran responded to the sanctions by calling them an "inhumane and hostile act" and asserting that they had lost their effectiveness.
At the same time, geopolitical tensions amplified after Moscow warned it might strike British military targets both inside and outside Ukraine in retaliation for Kyiv’s strikes on Russian territory using long-range cruise missiles provided by Britain. In response to concerns about escalation, President Trump said Russian President Vladimir Putin would not attack a North Atlantic Treaty Organization - NATO - country, and he sought to downplay media reports that CIA Director John Ratcliffe had warned Russian officials against such an attack earlier in the week. Britain is one of NATO’s founding members.
These diplomatic and military developments have been reflected in cautious market behavior, with oil benchmarks trimming gains from earlier in the week and moving toward weekly declines. Market participants are monitoring both the status of Iran-U.S. diplomacy and the potential for further Russia-UK-related escalations for cues on supply risk and broader market direction.
Market snapshot: Brent - $89.45 (-$0.25); WTI - $83.31 (-$0.22). Weekly change: Brent -5.3%, WTI -4.3%.