• WTI heads for a weekly decline after six straight gains as markets await the US–Iran meeting.
• Progress in US–Iran talks could ease near-term escalation risks and supply disruption fears tied to a major OPEC producer.
• Saudi Arabia cut Asia crude prices to 2020 lows, signaling oversupply but reflecting confidence in demand.

West Texas Intermediate (WTI) Oil price recovers its recent losses from the previous session, trading around $63.90 per barrel during the Asian hours on Friday. However, WTI price is on track for a weekly decline after six consecutive weeks of gains, largely driven by expectations surrounding a United States (US)–Iran meeting scheduled later in the day.

Tehran is expected to center the talks on its long-standing nuclear dispute with Western powers, while Washington aims to broaden the agenda to include Iran’s ballistic missile program, regional proxy support, and human rights concerns.

Any meaningful progress could ease near-term fears of military escalation and potential supply disruptions involving the major OPEC producer, which accounts for roughly one-third of global crude output.

That said, differing views on the scope of the discussions raise doubts about whether key differences can be resolved. A renewed escalation in US–Iran tensions could threaten Oil flows, as nearly 20% of global Oil consumption transits the Strait of Hormuz between Oman and Iran.

Meanwhile, Saudi Arabia lowered official selling prices for its flagship crude to Asia to the weakest level since late 2020, signaling oversupply conditions, although the smaller-than-anticipated cut suggested underlying confidence in demand.

Markets are also watching developments in the Russia–Ukraine conflict, following renewed strikes on Ukraine’s energy infrastructure, even as Washington and Moscow moved to reestablish senior-level military dialogue.