The easing of Middle East tensions is expected to help push oil prices slightly lower, and they are expected to close down this week.

Investing.com - Oil prices edged lower during Friday’s Asian trading session, with the week expected to end in decline as hopes for de-escalation in the Middle East reduce the recent risk premium supporting the market.

As of 20:46 Eastern Time (00:46 Beijing Time), Brent crude futures for May fell 0.7% to $107.8 per barrel, while West Texas Intermediate (WTI) futures declined 0.8% to $93.72 per barrel.

Both contracts are expected to drop over 4% this week.

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U.S. President Donald Trump announced that, at Tehran’s request, he will suspend attacks on Iran’s energy infrastructure for 10 days.

Trump added that negotiations with Iran are “progressing very well,” boosting hopes for a diplomatic breakthrough. However, Iranian officials remain more cautious about the talks.

This statement helps ease concerns over potential supply disruptions in the Middle East, especially around the Strait of Hormuz, a critical chokepoint for global oil flows.

In recent weeks, oil markets have been highly volatile due to escalating tensions involving the U.S., Israel, and Iran, as well as fears of disruptions to shipping routes and energy facilities, leading to sharp price surges.

However, repeated signals of de-escalation have triggered pullbacks as traders reassess the likelihood and duration of any supply shocks. Earlier this week, oil prices fell sharply after Trump delayed a planned attack.

Despite recent declines, prices remain high compared to levels before the escalation of the conflict.

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