Oil hovers near $106 amid US-Iran truce hopes, Saudi attacks

September 25, 2026 (MLN): Oil prices edged lower on Friday as markets balanced hopes of a potential truce between the United States and Iran against renewed security risks in the Middle East following Houthi attacks on Saudi Arabia.

Currently, Brent crude futures is up, 2.54%, at $105.80 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is down by $1.44, or 1.52%, to $93.17 per barrel by [10:32 am] PST

Brent recorded its highest close since September 15, while WTI posted its first daily gain in several sessions. WTI had declined 13% over the previous six sessions and was down 6.42% for the week, compared with a 2.09% weekly increase for Brent.

The spread between Brent and WTI widened to $12.68, its highest level since May, when the gap exceeded $13.

The divergence has largely been attributed to concerns that a US ban on diesel exports could increase supplies in the domestic market. The two benchmarks typically move in tandem, although WTI generally trades at a discount to Brent.

Meanwhile, US and Iranian negotiators in New York are discussing a phased route out of the conflict that could involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran, according to Reuters.  

Since the war began at the end of February, around one-fifth of global oil and gas shipments have been curtailed. The disruption contributed to a 50% increase in oil prices during March and has also prompted LNG buyers to seek more diversified and stable sources of supply.

Iranian President Masoud Pezeshkian said on Thursday that the United States must decide whether it wants to bring the war to an end.

At the same time, Saudi Arabia said it intercepted six ballistic missiles launched by Yemen's Iran-backed Houthis, preventing attacks targeting the southern province of Taif and the Yanbu area on the Red Sea.

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