Oil prices were largely muted on Friday amid uncertainty over negotiations between the U.S. and Iran to fully cease hostilities and address Tehran's nuclear ambitions.
Brent crude, the international benchmark, climbed 0.49% and clocked in at $80.24 per barrel, while West Texas Intermediate, the U.S. benchmark, dropped 0.25% and stood at $76.41 per barrel.
Oil prices have been largely moved by developments related to the war in Iran. They plunged over the past days as the countries signed a memorandum of understanding to reopen the Strait of Hormuz and kick off broader negotiations about Tehran's nuclear ambitions.
However, talks planned in Switzerland on Friday were postponed as clashes between Israel and Hezbollah, which Tehran has emphasized as an integral part of the deal, continue.
"The U.S. delegation has been prepared to depart at the first available opportunity. But the logistics of these negotiations have never been simple or predictable," the White House said in a statement on Thursday night when announcing Vice President JD Vance wouldn't be traveling. "As of now the Vice President is not departing tonight. We look forward to beginning technical talks as soon as possible."
A U.S. official told Axios that Iranian claims about violations of the ceasefire by Israel could be the reason for the delay. Israel and Hezbollah engaged in heavy fighting on Thursday night. Four IDF soldiers were killed in south Lebanon, and five soldiers were wounded hours later. The Lebanese health ministry, in turn, said 18 people were killed and 33 people were wounded by Israeli strikes.
The IDF said it killed dozens of Hezbollah operatives through more than 80 targets over the past hours, reacting to the group's "repeated violations" of the ceasefire.
Israeli Prime Minister Benjamin Netanyahu had claimed earlier on Thursday that troops will stay in southern Lebanon as along as needed.
A senior Israeli official told Reuters on Thursday that the country is "conducting stubborn negotiations" over the situation in the country.
The Israeli Defense Forces (IDF) also published an updated map of its security zone saying troops won't withdraw at the moment.
President Donald Trump, on his end, said in a social media publication that the "United States is committed to PEACE, and we encourage everyone in the Middle East Region to maintain their commitment to allowing our negotiations to beautifully unfold."
