Oil prices ease as Iran foreign minister heads to Pakistan talks

Friday 24 April 2026 - 15:20

By: Dakir Madiha

Oil prices ease as Iran foreign minister heads to Pakistan talks

Global oil prices pulled back after news that Abbas Araghchi is traveling to Islamabad for a new round of negotiations between Iran and the United States. The diplomatic signal interrupted a five day rally driven by severe supply disruptions, offering markets a potential path toward de escalation.

Brent crude briefly rose above 107 dollars per barrel on Thursday, capping a weekly gain of nearly 17 percent, before slipping to around 105 dollars early Friday. West Texas Intermediate declined to about 95 dollars. The shift followed expectations that talks in Islamabad could reduce tensions that have shaken global energy markets.

Sources indicated that Araghchi would arrive with a small delegation for a second round of direct talks after earlier negotiations in mid April ended without agreement. Preparations for the meeting were already underway, including the presence of US teams handling logistics and security. Iran had previously hesitated to participate while a naval blockade remained in place, citing repeated ceasefire violations as a barrier to progress.

The broader context remains highly volatile. The conflict has disrupted energy flows across the Gulf region, with production estimated to be down by more than 14 million barrels per day compared with pre conflict levels. Supply interruptions have intensified in recent weeks, and key producers have struggled to compensate for the shortfall despite available spare capacity.

The Strait of Hormuz remains largely closed, severely limiting global oil shipments. The waterway previously handled about one fifth of worldwide oil trade. Recent seizures of vessels and continued military tensions have further constrained exports, amplifying uncertainty across commodity markets.

Analysts warn that the outcome of the negotiations will be decisive. A breakdown in talks could push Brent prices toward 150 dollars per barrel in a worst case scenario, while continued instability could sustain prices above 120 dollars. Rising costs have already begun to reduce global demand, and prolonged disruption risks deeper economic consequences.

US shale producers have shown limited urgency to increase output despite elevated prices, citing uncertainty and market volatility. Fuel costs have surged, with diesel prices in the United States rising sharply since the start of the conflict. The trajectory of oil markets now hinges on whether diplomatic efforts can stabilize the region or whether supply disruptions will intensify further.