-- Global energy markets remain on edge on Friday as reports emerged that Tehran has submitted a fresh diplomatic proposal for negotiations with Washington.
The Brent futures contract eased 0.3% to $110.71 per barrel. Murban futures fell 1.5% to $106.39 per barrel.
According to state news agency IRNA, the latest proposal was reportedly delivered to US officials via Pakistani mediators late Thursday.
However, crude remains on track for weekly gains as the fundamental dual blockade persists.
"Brent Crude remains elevated after hitting a wartime high on Thursday, with no sign that US and Iranian blockades of the Strait of Hormuz will be lifted anytime soon, prolonging and worsening the supply squeeze," Saxo Bank analysts said.
As the blockade of the Strait of Hormuz enters its third month, the prospect of a swift resolution has dimmed, with Iran's new Supreme Leader and the US administration both doubling down on their respective positions.
Iran's new Supreme Leader, Mojtaba Khamenei, signaled a hardline shift in Tehran's policy. Khamenei vowed that the Islamic Republic would not abandon its nuclear or missile technologies, explicitly stating that Iran intends to maintain its grip on the Strait of Hormuz, according to a Saxo Bank note.
Simultaneously, US President Donald Trump has maintained a firm stance on the blockade of Iranian ports, despite the resulting upward pressure on global oil prices.
Meanwhile, the wait-and-see period for the paper markets may be ending.
"The gap between the paper and physical markets is narrowing as tightness begins to materialise for the first time since the conflict began," ANZ analysts said.