Oil prices were steady, heading for a weekly decline as US-Iran talks remained in focus.

Oil prices slipped in Asian trading on Friday and were on track for a weekly loss, as markets focused on whether upcoming U.S.–Iran talks could ease Middle East tensions. Investors also priced in a lower risk premium and took profits after last week’s strong gains. Brent futures for April held at $67.58 a barrel, while WTI futures edged up 0.1% to $63.09 by 21:13 ET (02:13 GMT).

U.S.–Iran negotiations are scheduled to be held in Oman.

U.S. and Iranian officials are scheduled to hold talks in Oman later on Friday, as military tensions in the Middle East intensify following Washington’s deployment of at least two naval fleets to the region. Investors are optimistic that dialogue between Tehran and Washington could ease tensions and reduce the risk of a wider conflict, prompting traders to strip some geopolitical risk premium from oil prices this week.

However, differences have emerged over the scope of the discussions, with Iran rejecting U.S. demands to address its missile program and insisting that talks will focus solely on its nuclear ambitions. Iran is a key global oil producer and sits alongside the Strait of Hormuz, a critical chokepoint for global crude shipments.

Oil set for weekly decline as profit-taking and a stronger dollar weigh

Brent and WTI futures were down between 2.5% and 4% for the week, as prices came under pressure from profit-taking after six straight weeks of gains. Crude had earlier been supported by expectations of tighter supply, particularly after extreme weather in the U.S. disrupted output nationwide.

Supply disruptions in Kazakhstan and concerns over an escalation of conflict in the Middle East also lent support to prices. However, sentiment shifted this week as traders locked in profits, while a broader selloff across commodities—driven by a strengthening U.S. dollar—further weighed on oil markets. The dollar was on track for its strongest weekly performance since October, as investors viewed Kevin Warsh, U.S. President Donald Trump’s nominee for the next Federal Reserve chair, as a less dovish choice.

Sources: Ambar Warrick