Oil futures declined on Friday, likely due to a technical correction after rising for five consecutive sessions through Thursday. Front-month WTI crude oil futures fell 0.6% to $86.30 per barrel at 2347 GMT, reversing some of the week's gains.

Losses may be limited, however, by the lack of progress in U.S.-Iran talks to reopen the Strait of Hormuz. "Conflicting narratives over the status of the Strait of Hormuz and fading hopes for a diplomatic breakthrough remained the dominant source of uncertainty," Bank Pro's Paolo Broccardo said in an email. The analyst noted that geopolitical tensions continue to underpin the market despite the technical pullback.

The CEO added that "at the same time, the U.S. vowed to escalate economic sanctions against Iran, fueling risks of additional tensions in the region." This combination of technical selling pressure and persistent geopolitical risk creates a mixed outlook for crude prices in the near term. Traders remain focused on diplomatic developments and any signs of supply disruption in the critical waterway.