HOUSTON—Oil prices settled down on Friday as the US imposed new Iran-related sanctions, marking a diplomatic approach that fed hopes of a negotiated agreement, a day after President Donald Trump said he might take two weeks to decide US involvement in the Israel-Iran conflict.
Brent crude futures settled down $1.84, or 2.33 percent, to $77.01 a barrel.
US West Texas Intermediate crude for July – which did not settle on Thursday as it was a US holiday and expires on Friday – was down 21 cents, or 0.28 percent, at $74.93.
The more liquid August contract settled at $73.84.
Brent rose 3.6 percent on the week, while front-month US crude futures increased 2.7 percent.
The Trump administration issued fresh Iran-related sanctions, including on two entities based in Hong Kong, and counter-terrorism-related sanctions, according to a notice posted to the US Treasury Department website.
The sanctions target at least 20 entities, five individuals and three vessels, according to Treasury’s Office of Foreign Asset Control.
“Those sanctions are cutting both ways. They may be part of a broader negotiation approach towards Iran. The fact they are undertaking this is a signal they are trying to resolve this outside of conflict,” said John Kilduff, partner at Again Capital in New York.
Oil prices jumped almost 3 percent on Thursday after Israel bombed nuclear targets in Iran, while Iran – OPEC’s third-largest producer – fired missiles and drones at Israel. Neither side showed any sign of backing down in the week-old war.
