Oil prices slipped 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 were down $2.27, or 2.9%, to $76.58 a barrel by 11:48 am EDT. US West Texas Intermediate crude for July was down 21 cents or 0.3% at $74.93. The more liquid August contract was down around 0.1%, or 5 cents, to $73.45.
Brent was on track to rise 3.2% on the week, while front-month US crude futures were set to increase by 2.7%.
President Donald Trump's administration has 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.
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