Oil closes lower, Brent posts weekly gain of 8%

Oil drilling rigs

Oil prices pulled back at Friday’s close after Iran submitted a new proposal for negotiations with the United States. However, crude posted weekly gains amid concerns over a potential breakdown in diplomatic efforts.

Brent crude futures for July delivery fell 2%, or $2.23, to $108.17 per barrel, but recorded a weekly gain of 2.70%.

US WTI crude futures for June delivery dropped 2.98%, or $3.13, to $101.94 per barrel, though they surged about 8% over the week.

The daily decline followed a report by Iran’s IRNA news agency that Tehran had delivered a new proposal to a Pakistani mediator on Thursday, in a move that could help revive stalled efforts to end the conflict that began in late February.

The proposal offered some optimism for keeping diplomatic channels open, although uncertainty continues to dominate the outlook. Prices remained highly volatile during the week, with Brent briefly hitting $126.41 per barrel on April 30, its highest level since March 2022.