Oil on track for weekly loss even as Iran tensions simmer

Brent crude futures are down 60 cents, or 0.67%, to $89.10 a barrel

Oil prices fell on Friday and are on track to snap a two-week winning streak, despite settling higher in the ​previous session following a report, opens new tab that US President Donald Trump is not interested in ‌returning to previous deal terms with Iran.

Brent crude futures were down 60 cents, or 0.67%, to $89.10 a barrel. West Texas Intermediate crude futures fell 64 cents, or 0.77%, to $82.89.

Both ​benchmarks were poised to end the week lower, with Brent down 5.3% ​and WTI falling 4.3%.

"Despite diplomatic efforts hitting a roadblock, there are ⁠growing signs of additional oil flowing through the Strait of Hormuz," ING analysts ​said in a note. "As the conflict persists, producers are adapting to the new realities ​and becoming increasingly comfortable navigating the strait."

Goldman Sachs on Thursday estimated recent total Gulf exports at 15 million to 16 million barrels per day (bpd), 7 million to 8 million bpd below pre-war ​levels but 5 million to 6 million above the lowest point in March.

Read: Hormuz crisis triggers oil reserves plan

Citing ​people familiar with the matter, the Wall Street Journal report said the Trump administration has repeatedly ‌told ⁠mediators it has no interest in reviving the June memorandum of understanding, complicating diplomatic efforts to restart talks.

Earlier on Thursday, Washington said it was not in talks with Iran despite diplomatic efforts by other countries to re-engage the two sides.

On Monday, the ​US announced what it ​called the "toughest sanctions ⁠in history" on Iran. Tehran said the sanctions were an "inhumane and hostile act" that had lost their effectiveness.

Elsewhere, geopolitical tensions escalated ​after Moscow warned it could strike British military targets inside and ​outside Ukraine ⁠in response to Kyiv's attacks on Russian territory using British-supplied long-range cruise missiles.

Trump, however, said Russian President Vladimir Putin will not attack a North Atlantic Treaty Organisation (NATO) country, and ⁠he ​downplayed media reports that CIA Director John Ratcliffe this ​week had warned Russian officials against such an attack. Britain is one of the founding members of ​NATO.