Oil futures post sharpest weekly drop since April with Iran disputing U.S. terms

Tehran demands the blockade be lifted first, and talks on reopening the Strait of Hormuz have stalled since late September.

Oil futures post their sharpest weekly drop since April, with the session still trading. Iranian officials dispute whether the U.S. honored the terms of the ceasefire between the two countries.

The fall looks like traders pulling back the risk premium that built up through months of tanker strikes, mine incidents and the Konark base attack. Deadlines have slipped without a binding agreement, and progress reports in this conflict have often reversed within hours. The size of the move looks more like repositioning after a long run-up in crude than a sign that the standoff over Hormuz is over.

The Strait of Hormuz remains the sticking point. Tehran demands the blockade be lifted first, a sequencing dispute that has stalled national-level proposals since late September. The representative of Iran's Supreme Leader in Khuzestan said any reopening must happen within Iran's arrangements and conditions.

Trump has publicly pledged no strikes on Iran before November 3. Strikes this month hit Saudi airports and Aramco's Dhahran headquarters. The State Department said Houthi attacks on Saudi Arabia are increasing, naming civilian airports and critical infrastructure as targets.