Brent crude oil has retreated from the $100 per barrel level. Despite recent escalations in U.S.-Iran hostilities and repeated threats of military force from the White House, oil continues to be transported via Middle Eastern trade routes.
Brent crude futures fell about 4% on Friday, settling near $97 per barrel, marking the largest single-day drop since late June.
Traders are digesting a series of reports regarding the direction of U.S.-Iran peace talks, while momentum indicators suggest the rally has stalled after a rapid price surge.
Oil prices fell further following reports that Pakistan is exploring a path to restart U.S.-Iran negotiations. At the same time, it was reported that President Trump met with senior advisors and top cabinet officials on Friday to discuss whether to intensify military strikes against Iran.
The relative strength index for crude, a measure used to gauge price momentum, indicates that after roughly a week of gains, oil prices may be entering a period of weakness.
Bart Melek, global head of commodity strategy at TD Securities, said: "The oil market is taking a breather. So far, oil shipments through the Bab el-Mandeb Strait have not been severely disrupted, and Saudi Arabia is continuing to use alternatives, including the Suez-Mediterranean Pipeline across Egypt and arranging for supertankers with reduced loads to transit the Suez Canal."
Speaking at an event in the White House Oval Office, Trump stated he had not yet decided on launching a large-scale attack on Iran.
Brent crude futures for September delivery settled 3.9% lower, closing at $96.78 per barrel in New York.
West Texas Intermediate (WTI) for September delivery fell 3.1%, settling at $89.31 per barrel.
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