-- Oil benchmarks were mixed Friday as the market weighed renewed US-Iran peace efforts in Pakistan against escalating maritime conflict.
Brent crude futures advanced by 0.6% to $105.73 per barrel, while Murban oil futures dipped 1.7% to $104.11/bbl.
Traders balanced intensifying geopolitical risks with a glimmer of diplomatic hope.
In a social media post Thursday, US President Donald Trump confirmed a three-week extension of the Israel-Lebanon ceasefire.
He said that the US will now collaborate directly with the Lebanese government to bolster defences against Hezbollah.
Adding to the diplomatic momentum, a Pakistani government source reportedly revealed that Iranian Foreign Minister Abbas Araghchi will arrive in Islamabad Friday night, according to a Reuters report.
A small Iranian team plans to engage in a second round of peace talks with US representatives already on the ground, as per the report.
However, escalating hostilities in the Strait of Hormuz continue to underpin global prices.
On Thursday, Iran released footage of commandos in speedboats storming a large cargo ship, asserting its grip on the chokepoint that handles 20% of global oil and gas.
Despite the flurry of diplomacy, President Trump signalled a readiness for a prolonged standoff, posting on Truth Social that he will not set a "timetable" for ending the conflict as he seeks a "great deal" with Tehran.
Saxo Bank analysts warned that even a successful peace deal would not provide immediate relief.
They projected that normalizing global shipping flows would take several months, sustaining acute tightness in the diesel and jet fuel markets.
Meanwhile, regional instability persists as Israel warned it remains prepared to restart strikes on Iranian targets if the Islamabad talks fail to produce a breakthrough.