Oil prices near two-week low as Iran tensions drop

Oil prices fell on Friday, August 28, 2026, and are on track to snap a two-week winning streak, despite settling higher in the ​previous session.

Oil prices had added gains after a report that United States 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 at 0636 GMT, while 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%.

ING analysts ​said in a note: “Despite diplomatic efforts hitting a roadblock, there are ⁠growing signs of additional oil flowing through the Strait of Hormuz.

“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.

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.

Crude oil imports hit 2.39m tonnes at Lagos ports in August

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 ​U.S. 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 Russia 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 Organization (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.