Oil Prices Set to Reverse Two-Week Upswing Amid Iran Tensions

Brent crude futures slipped 25 cents, or 0.3 %, to $89.45 a barrel, while West Texas Intermediate fell 22 cents, the same 0.3 %, to $83.31. Both benchmarks are on track to close the week lower, with Brent down 5.3 % and WTI down 4.3 % from the start of the month.

The decline comes as U.S. President Donald Trump’s administration signals it has no interest in re‑adopting the June memorandum of understanding with Iran, stalling diplomatic efforts to ease tensions in the Strait of Hormuz. Washington also reaffirmed that it is not in talks with Tehran, even as other nations push for a renewed dialogue.

The U.S. has imposed what it calls the "toughest sanctions in history" on Iran, a move Tehran has condemned as "inhumane and hostile." Meanwhile, Moscow has warned it could target British military sites inside and outside Ukraine in response to U.S.‑supplied cruise missile strikes.

These geopolitical developments have weighed on market sentiment, prompting a pause in the oil rally that had seen prices climb for the past two weeks.