Oil prices experienced a decline as West Texas Intermediate (WTI) fell by 5.5% to around $102 per barrel amid uncertainty surrounding US-Iran peace negotiations. Despite this drop, WTI is on track for a weekly gain of about 11% due to the ongoing conflict and the blockade of oil exports from the Persian Gulf. The situation has led to significant price volatility, with traders cautious ahead of the weekend. Iran expressed readiness to continue diplomatic efforts with the US, although US President Donald Trump indicated a pessimistic outlook, citing demands from Iran that he could not agree to. Control of the Strait of Hormuz has become a pivotal issue, affecting global energy flows and raising concerns over supply shortages. Chevron's CEO highlighted the extreme stress on the global energy system, while ConocoPhillips warned of imminent critical oil shortages for some nations as the conflict continues. The narrowing gap between paper and physical oil prices indicates tightening domestic supplies in the US, as crude exports surged to record levels last week to meet global demand.