RoydadNaft –  Oil prices declined on Friday amid signs of potential U.S. talks with Iran regarding its nuclear program, which eased concerns about possible supply disruptions from a U.S. attack.

According to Roydad Naft reports, Brent crude futures fell 21 cents, or 0.3%, to $70.50 per barrel (as of 12:19 GMT). The March contract expires today. The more active April contract dropped 45 cents, or 0.65%, to $69.14.

U.S. WTI crude fell 38 cents, or 0.6%, to $65.04 per barrel.

Tamas Varga, analyst at PVM Oil Associates, said: “President Trump’s readiness to give diplomacy a chance on Iran appears to have made U.S. military intervention less likely than it did yesterday.”

Middle East tensions and oil prices had risen this week as the U.S. bolstered its military presence in the region. On Wednesday, U.S. President Donald Trump urged Iran to reach an agreement on its nuclear program or face military options, but on Thursday he stated that he intends to hold talks with the country’s leaders.

Despite today’s decline, benchmark prices remain on track for a significant monthly increase. Brent is headed for its largest monthly jump since January 2022, while WTI is set to post its biggest monthly gain since July 2023.

Downward pressure on prices also came from a stronger U.S. dollar, which had hit a four-year low earlier in the week but rebounded on Friday following Trump’s announcement that he is nominating Kevin Warsh, former Federal Reserve governor, to chair the central bank after Jerome Powell’s term ends in May.

A stronger dollar can limit demand from oil buyers paying in other currencies.

Varga added: “Rising U.S. crude production after maintenance shutdowns, along with Kazakhstan nearing the restart of output at the Tengiz oil field, has also helped shift market sentiment. Given this week’s strong upward performance, it makes sense to expect some profit-taking ahead of the weekend holiday.”

Meanwhile, according to Reuters calculations based on industry source estimates, peak periods for maintenance at Russia’s primary oil refineries are forecast for this month and September this year.

A Reuters poll of 32 analysts showed that most expect prices to stay around $60 per barrel this year, as the outlook for oversupply offsets potential disruptions from geopolitical tensions.