Oil on track for weekly loss even as Iran tensions simmer

• Brent crude fell to $89.45 per barrel while WTI dropped to $83.31, both down 0.3% in Friday trading
• The Trump administration reportedly told mediators it will not revive the June memorandum of understanding with Iran, complicating diplomatic efforts
• Additional geopolitical tensions emerged as Russia threatened strikes on British military targets following Ukraine's use of UK-supplied long-range missiles

Summary: Oil on Track for Weekly Loss Despite Iran Tensions

Key Price Movements:

Oil prices declined Friday, poised to end a two-week winning streak. Brent crude fell 25 cents (0.3%) to $89.45 per barrel, while West Texas Intermediate dropped 22 cents (0.3%) to $83.31. Both benchmarks faced significant weekly losses, with Brent down 5.3% and WTI falling 4.3%.

Main Developments:

Despite geopolitical tensions that typically support oil prices, markets declined following reports that President Trump's administration has no interest in reviving June's memorandum of understanding with Iran. The Wall Street Journal cited sources indicating the administration has repeatedly informed mediators of this position, complicating diplomatic efforts.

Geopolitical Context:

Washington confirmed it is not negotiating with Iran despite mediation attempts by other nations. Earlier in the week, the U.S. announced what it described as the "toughest" sanctions on Iran. Tehran characterized these measures as "inhumane and hostile," claiming they had lost effectiveness.

Additional tensions emerged as Moscow threatened to strike British military targets following Ukraine's use of British-supplied long-range cruise missiles against Russian territory. However, Trump downplayed concerns about potential attacks on NATO members, stating Putin wouldn't target NATO countries.

Market Implications:

The weekly decline suggests traders are weighing increased supply concerns against geopolitical risk premiums. Despite heightened Middle East and Russia-Ukraine tensions that would normally support prices, oil markets are responding more heavily to diplomatic breakdowns and potential supply dynamics. The significant weekly losses indicate bearish sentiment may be overtaking geopolitical premium considerations.