Brent Posts Biggest Weekly Drop Since Covid as Iran Deal Hopes Weigh on Oil

Oil prices posted a sharp weekly decline as investors weighed the prospect of an agreement to end the Iran war, even as threats to Middle East shipping continued to support the market.

Brent fell more than 13% for the week, its biggest weekly percentage drop since the start of the Covid pandemic, according to The National. West Texas Intermediate lost 12.7%.

The benchmarks finished Friday slightly higher. Brent settled at $98.32 a barrel, up 0.03% for the day, while WTI closed at $90.83, a daily gain of 0.34%. Those small increases did not erase the week's losses.

Hopes for de-escalation followed heavy Republican losses in the U.S. midterm elections. President Donald Trump said he would decide whether to resume attacks on Iran or pursue an agreement after meeting his national security advisers.

The outlook remained uncertain. Attacks on tankers in the Strait of Hormuz and the Bab Al Mandeb strait continued to raise concerns about oil supplies. The weekly decline therefore reflects changing expectations, not confirmation that the conflict or shipping disruptions have ended.

The lead image is an archive photograph of the Mina Al Ahmadi refinery in Kuwait.