High hopes, Oil dips after sharp gains as U.S., Iran reportedly explore Hormuz deal

Oil prices fell on Friday, as reports that the U.S. and Iran were exploring a phased deal to reopen the Strait of Hormuz tempered some supply concerns, although a Houthi missile attack on Saudi Arabia kept geopolitical risks elevated.

As of 04:02 ET (08:02 GMT), benchmark Brent crude futures expiring in November fell 0.4% to $106.15 per barrel, while U.S. West Texas Intermediate (WTI) crude futures slipped 1.1% to $93.62 per barrel.

Both benchmarks climbed as much as 5% during the previous session before paring some gains on reports of the U.S.-Iran talks.

Gains on Thursday came after Saudi Arabia said it intercepted six ballistic missiles fired by Yemen’s Iran-backed Houthis toward areas including Taif and the Yanbu region on the Red Sea.