Oil prices fall as Gulf states, Iran near possible Hormuz deal

Oil prices declined on Friday as investors monitored signs that Gulf states and Iran are nearing an agreement to reopen the Strait of Hormuz.

Brent crude futures fell by 57 cents, or 0.7 percent, to $81.92 a barrel. US West Texas Intermediate crude futures dropped 33 cents, or 0.4 percent, to $76.96 a barrel. Oil futures had risen by more than $3 a barrel at Thursday’s close.

Prices had already fallen earlier in the week as prospects for resolving the conflict improved, with both benchmarks on track for weekly losses of nearly 9 percent.

According to Reuters, a senior Iranian official said Tehran is seeking to impose fees of between 5 percent and 7 percent on ships based on the value of goods transported through the strait. Meanwhile, Oman is discussing fees of about 3 percent, while Washington insists that no fees should be imposed.

Investors are also awaiting the release of US employment data later today, which could provide clues about the Federal Reserve’s stance on interest rates. Higher interest rates increase borrowing costs for consumers, potentially slowing economic growth and reducing oil demand.