Overview
- U.S. and Iranian delegations are meeting in Muscat after both sides confirmed the talks would proceed, resolving a brief dispute over venue and format.
- Tehran wants discussions confined to the nuclear file, while Washington seeks to add ballistic missiles, regional proxy activity and human rights, leaving the scope unsettled.
- Prices fell after the confirmation of talks, with Brent and WTI on course for the first weekly decline of 2026 following a midweek spike when collapse reports briefly surfaced.
- Tensions remain elevated after the U.S. Navy shot down an Iranian drone and U.S. Central Command reported Iranian gunboats tried to board a U.S. merchant vessel near the Strait of Hormuz, a route for about one-fifth of global oil flows.
- Market fundamentals are mixed as a larger‑than‑expected U.S. inventory draw lends support, OPEC+ keeps output steady and analysts point to recovering Kazakhstan supply and other factors weighing on prices.