Brent set for more than 8% weekly drop as U.S.-Iran truce hopes fade

U.S.-Iran talks were called off and Israel intensified attacks in Lebanon, dimming the outlook for a Middle East truce. Brent is on track for a weekly decline of more than 8%, even as it held at US$79.78 a barrel on Friday. Expectations have cooled for a quick recovery in Strait of Hormuz shipping and for more than 85 million barrels of stranded crude to return to global markets. Goldman Sachs and Citi cut their mid-term oil price forecasts, with Citi’s base case projecting US$60–65 per barrel by the first quarter of 2027.