Oil prices fell Friday after rising sharply in the previous session as investors assessed prospects for U.S.-Iran diplomacy against continued threats to Saudi energy infrastructure. The commodity markets reacted to diplomatic overtures while remaining wary of potential disruptions to key regional supply routes. Market participants weighed the potential for eased sanctions against the backdrop of ongoing geopolitical instability in the Middle East.

The shift in sentiment highlighted the delicate balance between diplomatic progress and security concerns driving energy pricing.