Oil prices drop over 4% on China mediation reports, profit-taking

Global oil prices fell by more than 4% during trading on Friday, pressured by reports of Chinese moves to support mediation and revive peace talks between Washington and Tehran, as well as a wave of profit-taking by traders following strong gains earlier in the week.

Brent crude futures dropped to around $96.28 per barrel, after closing above $100 in the previous session for the first time since May. Similarly, US West Texas Intermediate crude futures fell to $88.58 per barrel.

Despite the end-of-week decline, both benchmarks were on track for weekly gains of nearly 7%, supported by disruptions to shipping in key maritime routes and ongoing concerns over global energy supply security.

Trading activity reflected a balance between downward pressure from political de-escalation efforts and persistent fears of fresh disruptions to oil flows and shipping in major waterways.